CALGARY, AB – Inter Pipeline Ltd. (“Inter Pipeline” or the “Company”) (TSX: IPL) today confirmed that an affiliate of Brookfield Infrastructure Partners LP (“Brookfield”) has commenced a conditional, unsolicited takeover bid (the “Offer”) to acquire all outstanding common shares of the Company not already owned by Brookfield.
The Offer will be reviewed by the Company’s Special Committee of independent directors (“Special Committee,”) formed by the Board of Directors (“Board”) on February 18, 2021, and a response will be provided in due course. The Board has 15 days to provide shareholders with a recommendation regarding the Offer. Shareholders will be notified of the recommendation of the Board through a news release and Inter Pipeline’s Directors’ circular.
Inter Pipeline urges shareholders to take no action on the Offer and reminds shareholders the Board has initiated a comprehensive strategic review process led by the Special Committee focused on maximizing value for shareholders. Consistent with its fiduciary duties, the Board will evaluate a broad range of options, including exploring a possible corporate transaction, while continuing to seek a partner for a material interest in the Heartland Petrochemical Complex.
“Inter Pipeline is a high-quality energy infrastructure business with a diversified asset portfolio that generates long-term predictable cash flows, all of which understandably make it attractive,” said Margaret McKenzie, Chair of the Special Committee. “It is the Board’s duty to not only review this offer, but to pursue all available opportunities to unlock maximum value for our shareholders.”
The Board remains open to all opportunities that may create shareholder value. The Board continues to believe Inter Pipeline is well-positioned to be an energy infrastructure leader in Western Canada and supports its action-based and focused business strategy.
Inter Pipeline is in the final stages of completing the Heartland Petrochemical Complex (“HPC”) project, the largest growth project in the Company’s history, which is expected to result in a step-change in cash flow in 2022. HPC strongly complements Inter Pipeline’s existing NGL and offgas processing infrastructure assets and provides a substantial new platform for growth. It will be an industry-leading petrochemical development for North America, with one of the lowest greenhouse gas emissions footprints in the world for producing polypropylene. Polypropylene is a high-value, easily transported, recyclable plastic used in the manufacturing of an extensive range of finished products and consumer goods, such as packaging, textiles, automobile components, healthcare products, and medical supplies.
Inter Pipeline expects the continued execution of its strategy will provide shareholders with material value creation, especially when HPC becomes operational and the economy emerges from the global pandemic.
TD Securities has been retained by Inter Pipeline and J.P. Morgan has been retained by the Special Committee to assist in the Strategic Review. Burnet, Duckworth & Palmer LLP and Dentons Canada LLP are acting as legal advisors to Inter Pipeline, its Board of Directors, and the Special Committee. Kingsdale Advisors is engaged as strategic shareholder and communications advisor, and Longview Communications as communications advisor to the Company.
About Inter Pipeline Ltd.
Inter Pipeline is a major petroleum transportation and natural gas liquids processing business based in Calgary, Alberta, Canada. Inter Pipeline owns and operates energy infrastructure assets in western Canada and is building the Heartland Petrochemical Complex — Canada’s first integrated propane dehydrogenation and polypropylene facility. Inter Pipeline is a member of the S&P/TSX 60 Index and its common shares trade on the Toronto Stock Exchange under the symbol IPL. www.interpipeline.com
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