Brookfield Infrastructure raises hostile takeover offer for Inter Pipeline

Inter Pipeline's Heartland Petrochemical Complex is shown under construction in Fort Saskatchewan, Alta., on Thursday, January 10, 2019. THE CANADIAN PRESS/Jason Franson

Brookfield Infrastructure Partners LP is raising its hostile takeover offer for Inter Pipeline Ltd.

The company is now offering $20 in cash or 0.25 of a Brookfield Infrastructure share for each Inter Pipeline share, with a cap on the number of shares that are available.

Brookfield says assuming shareholders select the higher value Brookfield Infrastructure share option resulting in 68 per cent cash and 32 per cent share proration, the offer is valued at $21.23, based on its share price of $95.41 on Wednesday.

The proposal is up from its earlier bid of $19.50 in cash or 0.225 of a Brookfield Infrastructure share.

Inter Pipeline has signed a friendly all-stock deal to be bought by Pembina Pipeline Corp., that would see shareholders receive half a Pembina share for each Inter Pipeline share they hold.

Pembina shares closed at $39.39 on the Toronto Stock Exchange on Wednesday, while Inter Pipeline shares closed at $20.27.

This report by The Canadian Press was first published July 15, 2021.