Brookfield Infrastructure intends to acquire Inter Pipeline

Brookfield Infrastructure Partners, together with its institutional partners, has offered to fully acquire Canadian pipeline transport company Inter Pipeline (IPL) in a deal valued at C$13.5bn ($10.65bn).

The infrastructure company intends to acquire the remaining shares it did not own previously in IPL.

As the largest investor in IPL, Brookfield currently holds 19.65% of all issued and outstanding shares in the Canadian pipeline company.

Under the terms of the offer, each shareholder of Inter Pipeline will have the option to receive C$16.5 ($13.01) in cash per share, or 0.206 of a Brookfield Infrastructure Corporation (BIPC) class A exchangeable share.

Brookfield is also considering sweetening its offer to between C$17 ($13.3) and C$18.25 ($14.3) a share to IPL if it is granted access to the due diligence of Inter Pipeline.

Brookfield said in a statement: “Brookfield Infrastructure firmly believes that its Offer is in the best interests of all IPL shareholders and that shareholders should have the opportunity to determine what is best for their investment.”

Brookfield Infrastructure said that the offer is fully financed. It has a maximum cash consideration of around C$4.9bn and a maximum number of around 19 million BIPC shares.

In September 2020, Inter Pipeline agreed to acquire the Milk River pipeline system from Plains All American Pipeline subsidiary Plains Midstream Canada.

Inter Pipeline agreed to acquire the pipeline in exchange for its 100% ownership interest in the Empress II and 50% ownership interest in the Empress V straddle plants.