Brookfield acquires 65.6% of Canada's Inter Pipeline in tender offer
24 August 2021
Brookfield Infrastructure has exceeded the modified statutory minimum condition and is filing a mandatory extension of the offer to 3 September, to provide remaining Inter Pipeline Ltd (IPL) shareholders time to tender.
This brings to an end a five-month bidding war for the Canadian firm, as the tendered shares exceed the minimum level of 55 per cent of shares not already owned or controlled by Brookfield.
Upon completion of payment for the tendered shares, Brookfield Infrastructure will own 68.9 per cent of the outstanding common shares of IPL. Brookfield has extended its offer for the take-up of additional IPL common shares to 3 September 2021 and has filed a mandatory extension.
Following the mandatory extension period, Brookfield intends to pursue a possible subsequent transaction to acquire any remaining shares that are not tendered within the mandatory extension period, to tke IPL private, Brookfield stated in a release.
Brookfield Infrastructure Partners LP, together with its institutional partners (collectively known as Brookfield Infrastructure) received 253,933,715 common shares of IPL, representing 65.6 per cent of the common shares not beneficially owned by Brookfield Infrastructure, in the tender offer.
The offer has been accepted and Brookfield Infrastructure said it will pay for the tendered shares within three business days. IPL shareholders who have already tendered need not take any further action, the company stated.
Brookfield said IPL shareholders who do not tender their shares during the mandatory extension period may not have another opportunity to sell their shares to Brookfield Infrastructure unless and until completion of any subsequent acquisition transaction.
Shareholders may elect up to 100 per cent cash consideration, totalling C$20 per share of IPL without being subject to proration or 0.250 of a class A exchangeable subordinated voting share of Brookfield Infrastructure Corporation, subject to proration.