Inter Pipeline Ltd.’s board of directors has recommended acceptance of the revised C$8.6-billion ($6.8-billion) takeover offer filed July 19, 2021, by an affiliate of Brookfield Infrastructure Partners LP in light of the termination of its arrangement with Pembina Pipeline Corp. (OGJ Online, July 26, 2021).
Under the revised Brookfield offer, each Inter Pipeline shareholder will have the ability to elect to receive, per Inter Pipeline share, $20.00 in cash or 0.25 of a Brookfield Infrastructure Corp. (BIPC) Class A exchangeable subordinate voting share. Brookfield’s June 2 offer was $19.50 in cash or 0.225 of a BIPC share and its original offer, made Feb. 10, was $16.50 in cash or 0.206 of a share.
On May 31, 2021, Inter Pipeline entered into an agreement to combine with Pembina, whereby Pembina agreed to exchange 0.5 of a Pembina common share for each issued and outstanding Inter Pipeline share. After evaluating the revised Brookfield offer, however, Inter Pipeline advised Pembina that the board would not be reconfirming its recommendation of the Pembina arrangement, and Pembina terminated it effective July 25, 2021.
Inter Pipeline operates six pipeline systems delivering from production sites in Alberta and Saskatchewan to market hubs in and around Hardisty and Edmonton, Alta. Oil sands pipelines include the Cold Lake, Corridor, and Polaris systems. Conventional oil pipelines include the Bow River, Central Alberta, and Mid-Saskatchewan systems. Inter Pipeline also operates bulk liquid storage terminals in Denmark and Sweden.
The company’s more than 3,300 km of oil sands pipeline transported roughly 1.24 million b/d of bitumen blend and diluent in 2020. Its oil sands systems also include 3.8 million bbl of storage.
