Brookfield Infrastructure Partners has formally launched its unsolicited offer to acquire all outstanding common shares of Inter Pipeline.
The hostile bid was first announced on 11 February 2021. The media notice of the offer, of C$16.50 in cash or 0.206 of a Brookfield Infrastructure Corporation class A exchangeable share per Inter Pipeline share held, has now appeared in two Canadian newspapers and the relevant documents have been filed with the Canadian securities regulators. Details will be posted to all Inter Pipeline shareholders. Brookfield says that the offer price has been calculated based on the closing price of its shares on 10 February 2021, the last trading day prior to the announcement of the offer.
Inter Pipeline shareholders have until 5pm MST on 7 June 2021 to accept the offer. If and when Brookfield acquires 66.66% of Inter Pipeline shares, the company intends to take steps to acquire the remaining shares in accordance with applicable laws.
Inter Pipeline continues to encourage its shareholders to take no action, and says it will provide a formal response from its board of directors ‘in due course. On 19 February 2021 the company announced a comprehensive strategic review to maximise shareholder value. It is exploring a possible corporate transaction and is seeking a partner to take a ‘material interest’ in its Heartland Petrochemical Complex, which it says will be ‘an industry-leading petrochemical development for North America’, with low greenhouse gas emissions.
;Inter Pipeline is a high-quality energy infrastructure business with a diversified asset portfolio that generates long-term predictable cash flows, all of which understandably make it attractive,’ says Margaret McKenzie, chair of the Special Committee set up by the board to carry out the strategic review. ‘It is the board’s duty to not only review this offer, but to pursue all available opportunities to unlock maximum value for our shareholders.’
Inter Pipeline says it is well-positioned to be an energy infrastructure leader and that its current strategy will provide its shareholders with material value creation, especially with the opening of the Heartland complex and the end of the pandemic.