Inter Pipeline's Heartland Petrochemical Complex under construction in Fort Saskatchewan, Alta., on Jan. 10, 2019.JASON FRANSON/The Canadian Press
Brookfield Infrastructure Partners said on Monday 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 C$16.50 per share for Inter, valuing Inter at C$7.08 billion ($5.62 billion).
Earlier this month, Brookfield said it was willing to raise its offer to as much as C$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.
Thee investment firm earlier this month also said it had acquired 19.65% economic interest in Inter Pipeline, to become the top shareholder in Calgary-based Inter Pipeline.
Brookfield said on Monday other shareholders now have until June 7 to accept its offer at the original C$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 natural gas liquids processing plants, said on Thursday 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.
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