Brookfield Infrastructure Partners said on Feb. 22 it formally launched its hostile bid to buy Inter Pipeline Ltd., weeks after the Canadian oil and gas transportation company rejected its unsolicited offer as inadequate.
Brookfield, which acquires and manages infrastructure assets, is offering CA$16.50 per share for Inter Pipeline, valuing the company at CA$7.08 billion (US$5.62 billion).
Earlier this month, Brookfield said it was willing to raise its offer to as much as CA$18.25 per Inter share if the company had come to the negotiating table, but Inter turned it down and later launched a strategic review of options.
The investment firm earlier this month also said it had acquired 19.65% economic interest in Inter Pipeline, to become the top shareholder in Calgary, Alberta-based Inter Pipeline.
Brookfield said on Feb. 22 other shareholders now have until June 7 to accept its offer at the original CA$16.50 per share with an option to take that amount in cash or Brookfield’s shares.
Inter Pipeline did not immediately respond to a Reuters request for comment.
Inter, whose assets include more than 7,000 km (4,300 miles) of oil pipelines, 5 million barrels of oil storage in western Canada and NGL processing plants, said on Feb. 18 its formal review could include a possible “corporate transaction” but no decisions have been made yet.
Brookfield Infrastructure has engaged BMO Capital Markets and Barclays Capital Canada Inc. to act as joint financial advisers.
(US$1 = 1.2599 Canadian dollars)
Recommended Reading
Woodside, Santos Scrap M&A Talks for $52B Combination
2024-02-07 - After nearly two months of due diligence and negotiations, Woodside did not offer a firm bid price for Santos, sources said.
E&P Highlights: Feb. 12, 2024
2024-02-12 - Here’s a roundup of the latest E&P headlines, including more hydrocarbons found offshore Namibia near the Venus discovery and a host of new contract awards.
ChampionX to Acquire RMSpumptools, Expanding International Reach
2024-03-25 - ChampionX said it expects the deal to extend its reach in international markets including the Middle East, Latin America and other global offshore developments.
Triangle Energy, JV Set to Drill in North Perth Basin
2024-04-18 - The Booth-1 prospect is planned to be the first well in the joint venture’s —Triangle Energy, Strike Energy and New Zealand Oil and Gas — upcoming drilling campaign.
Hess: Pre-emption Provision Doesn't Apply to Buyout Deal With Chevron
2024-02-27 - Hess Corp. said on Feb. 27 that a pre-emption provision does not apply to its proposed $53-billion buyout by Chevron Corp. and it remains "fully committed" to the deal.