Brookfield Infrastructure Partners has increased its bid for Canadian midstream company Inter Pipeline to nearly 8.58 billion Canadian dollars ($6.85 billion) to acquire shares in the latter that it did not previously own.

According to the latest revised quotation, shareholders of this midstream company can choose to receive 20 Canadian dollars (15.9 US dollars) per share in cash that is not affected by the prorated allocation, or accept 0.25 shares of Brookfield Infrastructure (proportional allocation). The revised offer is valued at 23.85 Canadian dollars (18.96 US dollars) per share for Inter Pipeline.

In response to the latest developments, the pipeline operator stated that Brookfield Infrastructure has not yet submitted any formal revised quotations. The company added that “shareholders do not need to take any action at this time, and its board of directors will make a formal recommendation in due course.” In June, Inter Pipeline agreed to be awarded nearly 8.5 billion Canadian dollars ($6.76 billion) by rival Canadian midstream company Pembina Pipeline. All-stock transaction acquisition.

In February 2021, Brookfield Infrastructure Corporation proposed to acquire Inter Pipeline for 16.5 Canadian dollars (13.1 US dollars) per share. After Pembina Pipeline made an offer, Brookfield Infrastructure increased its bid to 19.75 Canadian dollars (15.7 U.S. dollars) per share, and subsequently to 19.9 Canadian dollars (15.82 U.S. dollars). Earlier this week, the Alberta Securities Commission rejected Brookfield Infrastructure's application to cancel the proposed arrangement of Pembina Pipeline and Inter Pipeline. The committee also maintained the interruption fees that Inter Pipeline can pay to Pembina Pipeline under the arrangement in certain circumstances.

Keywords: International Engineering News

The transaction with Pembina Pipeline puts the value of Inter Pipeline's share of 19.7 Canadian dollars (15.6 US dollars) per share. According to the terms, shareholders of Inter Pipeline will issue 0.5 Pembina Pipeline shares for each share owned by Inter Pipeline. The combined company has an estimated enterprise value of 53 billion Canadian dollars (42.13 billion US dollars).Editor/Baohongying