Brookfield Infrastructure Partners said on Feb. 22 it formally launched its hostile bid to buy Inter Pipeline Ltd., weeks after the Canadian oil and gas transportation company rejected its unsolicited offer as inadequate.
Brookfield, which acquires and manages infrastructure assets, is offering CA$16.50 per share for Inter Pipeline, valuing the company at CA$7.08 billion (US$5.62 billion).
Earlier this month, Brookfield said it was willing to raise its offer to as much as CA$18.25 per Inter share if the company had come to the negotiating table, but Inter turned it down and later launched a strategic review of options.
The investment firm earlier this month also said it had acquired 19.65% economic interest in Inter Pipeline, to become the top shareholder in Calgary, Alberta-based Inter Pipeline.
Brookfield said on Feb. 22 other shareholders now have until June 7 to accept its offer at the original CA$16.50 per share with an option to take that amount in cash or Brookfield’s shares.
Inter Pipeline did not immediately respond to a Reuters request for comment.
Inter, whose assets include more than 7,000 km (4,300 miles) of oil pipelines, 5 million barrels of oil storage in western Canada and NGL processing plants, said on Feb. 18 its formal review could include a possible “corporate transaction” but no decisions have been made yet.
Brookfield Infrastructure has engaged BMO Capital Markets and Barclays Capital Canada Inc. to act as joint financial advisers.
(US$1 = 1.2599 Canadian dollars)
Recommended Reading
Texas LNG Export Plant Signs Additional Offtake Deal With EQT
2024-04-23 - Glenfarne Group LLC's proposed Texas LNG export plant in Brownsville has signed an additional tolling agreement with EQT Corp. to provide natural gas liquefaction services of an additional 1.5 mtpa over 20 years.
APA Corp. Latest E&P to Bow to Weak NatGas Prices, Curtail Volumes
2024-05-07 - APA Corp. plans to curtail gas and NGL production in the U.S. owing to weak Waha prices but remains confident it can deliver in the Permian Basin, CEO John Christmann said during a quarterly webcast with analysts.
Kissler: Mideast Tension Elevates Crude Prices—But for How Long?
2024-05-09 - Producers should be aggressive in locking in desirable crude oil prices on an abnormal market strength.
US Drillers Cut Oil, Gas Rigs for Third Week in a Row
2024-05-10 - Baker Hughes said oil rigs fell three to 496 this week, their lowest since November, while gas rigs rose one to 103.
The Secret to Record US Oil Output? Drilling Efficiencies—EIA
2024-03-06 - Advances in horizontal drilling and fracking technologies are yielding more efficient oil wells in the U.S. even as the rig count plummets, the Energy Information Administration reported.