Brookfield Infrastructure Partners L.P. made an unsolicited C$7.08 billion ($5.6 billion) offer on Wednesday to buy Canada’s Inter Pipeline Ltd as it seeks to benefit from rebounding oil and gas demand, after an approach last year was rebuffed.
Brookfield, which owns and operates assets in the utilities, transport and storage sectors, said it has acquired 19.65% economic interest in Inter Pipeline, to become the top shareholder in the Calgary-based company.
The infrastructure firm offered C$16.50 per share for Inter Pipeline, a 23.13% premium Wednesday’s close, valuing the company’s equity at C$7.08 billion. Including debt, the deal is valued at about C$13.5 billion. Brookfield said it is willing to sweeten its offer to between C$17 and $18.25 a share if it is granted access to due diligence.
Brookfield said it started amassing Inter Pipeline shares in March 2020 and first approached the company to discuss a deal in September, but discussions stalled as the two companies had markedly different views of Inter Pipeline’s value. Inter Pipeline’s assets include over 7,000 km (4,300 miles)of pipelines and 5 million barrels of oil storage in western Canada, as well as natural gas liquids processing plants. It also owns storage terminals in Denmark and Sweden.
By Nia Williams, Arathy S Nair
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