Inter Pipeline Walks Away from Pembina Deal in Favor of Brookfield Bid
(Reuters) — Canadian pipeline operator Inter Pipeline on Monday decided against recommending a C$8.5 billion ($6.77 billion) deal with rival Pembina Pipeline Corp to shareholders and instead chose to pursue a higher bid from Brookfield Infrastructure Partners.
Following Inter's U-turn, Pembina terminated the deal, choosing to walk away with a C$350 million breakup fee, while Brookfield said it expected Inter to recommend its offer to shareholders.
The moves come after five-month-long bitter bidding war between Brookfield, Inter and Pembina, which has played out amid a rebound in oil prices and energy stocks after last year's historic pandemic-led downturn.
Infrastructure buyout firm Brookfield first made an unsolicited bid of about C$7.8 billion for Inter in February and eventually raised it to about C$8.58 billion in cash or stock this month, winning support from leading proxy advisors.
Under the infrastructure fund's revised offer, Inter shareholders can elect to receive either C$20 per share in cash or 0.25 of a share of Brookfield Infrastructure.
Inter had opposed previous Brookfield's bids, electing to go with Pembina at the start of June after a four-months long strategic review.
However, Brookfield's latest offer looked too good to refuse, with proxy advisors Institutional Shareholder Services and Glass Lewis highlighting a higher price and better chances of regulatory approval.
Inter said on Monday it will pay Pembina a termination fee of C$350 million and will make a formal recommendation on the Brookfield offer in "due course".
The company said its board is "open to engaging with Brookfield in an effort to reach a mutually agreeable transaction."
"While we are disappointed with this outcome, we will continue to seek opportunities for growth through focused acquisitions," Pembina Chief Executive Officer Mick Dilger said.
Related News
Related News
- Kinder Morgan Proposes 290-Mile Gas Pipeline Expansion Spanning Three States
- Enbridge Plans 86-Mile Pipeline Expansion, Bringing 850 Workers to Northern B.C.
- Three Killed, Two Injured in Accident at LNG Construction Site in Texas
- Tallgrass to Build New Permian-to-Rockies Pipeline, Targets 2028 Startup with 2.4 Bcf Capacity
- TC Energy Approves $900 Million Northwoods Pipeline Expansion for U.S. Midwest
- U.S. Pipeline Expansion to Add 99 Bcf/d, Mostly for LNG Export, Report Finds
- Enbridge Adds Turboexpanders at Pipeline Sites to Power Data Centers in Canada, Pennsylvania
- Great Basin Gas Expansion Draws Strong Shipper Demand in Northern Nevada
- Cheniere Seeks FERC Approval to Expand Sabine Pass LNG Facility
- Heath Consultants Exits Locate Business to Expand Methane Leak Detection Portfolio
Comments