Inter Pipeline reconfirms support for strategic combination with Pembina

Inter Pipeline reconfirms support for strategic combination with Pembina

Today, Inter Pipeline reconfirmed that the board of directors recommended that shareholders support the strategic share-exchange transaction with Pembina Pipeline Corporation and reject the revised hostile takeover offer proposed by an affiliate of Brookfield Infrastructure Partners LP.

The board’s determination followed thorough consideration, including guidance from its financial and legal advisors, and the recommendation of a special committee.

More information regarding the Pembina Arrangement will be enclosed in a joint information circular that Inter Pipeline and Pembina will prepare, file and mail in due course to their respective shareholders for the Inter Pipeline Shareholders and the holders of Pembina Common Shares scheduled to be held on July 29, 2021. 

The Pembina Arrangement is currently anticipated to close late in the third quarter or early in the fourth quarter of 2021. 

Margaret McKenzie, chair of the board and the special committee, said: “The proposed combination with Pembina provides Inter Pipeline shareholders the ability to participate in a large, highly integrated energy infrastructure business with significant potential growth opportunities across the value chain, including additional future cash flow from the Heartland Petrochemical Complex.

“The strategic combination with Pembina supports an immediate increase in dividend yield and the ability to participate in meaningful anticipated commercial and operational synergies. In addition, following our thorough analysis, we expect the intrinsic value of this business combination to be in excess of $19.45 per share for Inter Pipeline shareholders, and superior to the Revised Brookfield Offer.”

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10th June 2021