Brookfield Infrastructure Partners LP is raising its hostile takeover offer for Inter Pipeline Ltd. to top a friendly deal the company struck to be acquired by Pembina Pipeline Corp.
Brookfield Infrastructure says its offer is valued at $19.75 per Inter Pipeline share including 74 per cent in cash and 26 per cent in shares.
Inter Pipline’s deal with Pembina would see shareholders receive half a Pembina share for each Inter Pipline share they hold, an offer worth about $18.91 per share based on Pembina’s closing share price Tuesday.
Brookfield Infrastructure says its offer, which includes up to $5.6 billion in cash, has received all required regulatory approvals and could close within weeks with minimal transaction risk.
It also noted that as financial investor it would not be seeking significant cost synergies by eliminating jobs.
The offer by Brookfield Infrastructure is up from an earlier proposal that was valued at $16.50 per share.