Page 4 - NorthAmOil Week 30 2021

NorthAmOil COMMENTARY NorthAmOil

Brookfield appears to have won

Inter Pipeline bidding war

Inter Pipeline has changed course to say it now favours the bid for it put forward

by Brookfield Infrastructure Partners, causing Pembina Pipeline to abandon a

previously agreed takeover

CANADA INFRASTRUCTURE investment firm Brook- ($5.7bn). The matter briefly appeared to
field Infrastructure Partners appears to have have been resolved in early June, when Pem-
WHAT: emerged as the winner of a bidding war for Can- bina agreed to buy Inter Pipeline in all-stock
Brookfield Infrastructure ada’s Inter Pipeline. The five-month bidding war CAD8.3bn ($6.7bn) deal, equivalent to
Partners appears to came to a head this week when Inter Pipeline’s CAD19.45 ($15.64) per share. However, Brook-
have won the battle for board of directors changed course and said it field proceeded to raise its hostile offer several
Inter Pipeline, after rival now favoured the bid by Brookfield, after hav- times, until it reached CAD8.58bn ($6.90bn)
bidder Pembina walked ing previously agreed to be acquired by Pembina this month.
away. Pipeline. Under the latest offer, Inter Pipeline share-
As a result, Pembina terminated its takeover holders can opt to receive either CAD20 ($16)
WHY: agreement with Inter Pipeline, paving the way per share in cash or 0.25 of a share of Brookfield.
Inter Pipeline has said for Brookfield’s offer to be officially accepted When Inter Pipeline informed Pembina
it now favours a bid by – though this has yet to happen. Pembina that its board was now recommending that the
Brookfield, following will receive a termination fee of CAD350mn company accept the Brookfield offer, Pembina
several revised offers. ($281mn) from Inter Pipeline as set out in the opted to terminate its agreement to acquire the
agreement between the two. company.
WHAT NEXT: “The industrial logic of a combined Pembina
Pembina will receive a Decisions and revisions and Inter Pipeline remains unparalleled and
$281mn termination fee The offer that Inter Pipeline now favours is the value creation between certain of our assets
from Inter Pipeline. Brookfield’s fourth, with the latter having revised is impossible to replicate by any other entity,”
its bid several times until Inter Pipeline finally Pembina’s president and CEO, Mick Dilger,
appeared to decide it was too good to turn down. stated. “While we are disappointed with this
In February, Inter Pipeline launched a stra- outcome, we will continue to seek opportunities
tegic review as it sought to fend off a hostile for growth through focused acquisitions.”
takeover bid from Brookfield worth CAD7.1bn Inter Pipeline, for its part, described the latest

P4 www. NEWSBASE .com Week 30 29•July•2021