The Inter Pipeline board of directors has unanimously determined that the recent hostile takeover bid by Brookfield is not in the best interests of the company and has urged shareholders to reject it.
Brookfield formally launched its hostile bid for Inter Pipeline on 23 February 2021, after announcing its intention on 11 February 2021. It offered C$16.50 (€11.00) in cash or 0.206 of a Brookfield Infrastructure Corporation class A exchangeable share per Inter Pipeline share held. Inter Pipeline asked its shareholders to take no action, prior to the formal response from its board of directors.
Inter Piepline says that its board took advice from financial and legal advisors and the recommendation of a Special Committee of independent directors. It has now determined that Brookfield’s offer ‘significantly undervalues Inter Pipeline’s standalone plan’.
‘Our business continues to perform strongly and we continue to expect that our nearly completed Heartland Petrochemical Complex, the largest growth project in our history, will deliver a step change in cash flow starting next year,’ says Margaret McKenzie, chair of the Special Committee. ‘We have launched a comprehensive strategic review process focused on maximising value for shareholders and we believe superior offers or other alternatives may emerge.’