Brookfield tops bid for Canada’s Inter Pipeline
Brookfield Infrastructure Partners said June 2 it would make a new bid for Canadian mid-stream infrastructure company Inter Pipeline, topping by C$0.30/share the offer submitted June 1 by Pembina Pipeline.
In its new bid, Brookfield is offering a combination of cash and shares worth C$19.75 (US$16.37)/share, a 4.4% premium to Pembina’s stock-only offer worth an estimated C$19.45/share. Cash represents 74% of the Brookfield offer, which will be made directly to Inter’s shareholders no later than June 24.
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Brookfield’s offer is valued at about C$8.48bn, consisting of C$5.6bn cash and 23mn Brookfield shares. Pembina’s offer carried an all-stock value of C$8.3bn, plus the assumption of C$6.9bn of debt, and would leave Inter’s shareholders owning about 28% of the combined company.
As Inter’s largest shareholder, Brookfield said it was “disappointed by the seeming lack of fiduciary responsibility shown by the decision of [Inter’s] board of directors to support an inferior proposal by Pembina.” The C$19.75/share offer, it said, was made privately before Pembina’s board decided to accept the Pembina offer.
With no remaining approvals required, Brookfield said its proposed transaction could close in as little as 20 days, compared to the estimated 180 days Pembina would need to close its offer.