Brookfield gets 65.6% stake of Inter Pipeline in $6.7 takeover bid

Industry:    2021-08-23

Brookfield Infrastructure Partners LP has received 65.6% shares of Inter Pipeline Ltd (IPL) in its takeover bid for the Canada-based pipeline operator, it said on Friday.

The move brings to an end a five-month bidding war for the Canadian firm, as the tendered shares exceed the minimum level of 55% of shares not already owned or controlled by Brookfield.

Brookfield said it will now own 68.9% shares of Inter Pipeline, which it intends to take private.

Inter Pipeline had recommended that its investors accept Brookfield’s revised C$8.58-billion ($6.69 billion) offer of cash or shares after walking away from a deal with rival Pembina Pipeline Corp.

The infrastructure fund and Pembina were bidding for Inter amid a rebound in oil prices and energy stocks from last year’s pandemic downturn.

Brookfield’s revised offer gives IPL shareholders either cash of C$20 a share or 0.25 of a Brookfield Infrastructure share.

Bloomberg news had first reported that Brookfield secured sufficient backing from IPL shareholders to push ahead with the offer.

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