Brookfield officially launches hostile bid to buy Inter Pipeline

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Inter Pipeline’s Heartland petrochemical complex is under construction in Fort Saskatchewan, Alta. On January 10, 2019.

JASON FRANSON / The Canadian Press

Brookfield Infrastructure Partners said on Monday it had officially launched its hostile offer to buy Inter Pipeline Ltd, weeks after the Canadian oil and gas transport 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 increase its offer to C $ 18.25 per Inter share if the company came to the negotiating table, but Inter declined and then launched a strategic review of options.

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The investment firm earlier this month also said it had acquired a 19.65% economic stake in Inter Pipeline, to become the largest shareholder in Inter Pipeline Calgary.

Brookfield said Monday that other shareholders now have until June 7 to accept its offer in the initial amount of C $ 16.50 per share with an option to take that amount in cash or in Brookfield stock.

Inter Pipeline did not immediately respond to a request for comment from Reuters.

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 Thursday that its formal review could include a possible “business transaction” but no decisions have been made yet.

Brookfield Infrastructure has retained the services of BMO Capital Markets and Barclays Capital Canada Inc to act as co-financial advisers.

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