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    Brookfield sweetens offer for Canada’s Inter Pipeline


Inter shareholders can now elect an all-cash option

by: Dale Lunan

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Complimentary, Natural Gas & LNG News, Americas, Corporate, Mergers & Acquisitions, News By Country, Canada

Brookfield sweetens offer for Canada’s Inter Pipeline

Brookfield Infrastructure Partners said June 18 it was prepared to sweeten its cash and share offer for Canadian infrastructure company Inter Pipeline by giving Inter shareholders the option to take all cash.

In early June, Brookfield offered a combination of cash and shares worth C$19.75 ($US16.37)/share, but capped the cash component at 74%. Its latest offer removes the cash limit, and in the event that Brookfield wins its case against a C$350mn break fee in the rival bid from Pembina Pipelines, is prepared to increase the cash offering by C$0.90/share.

“We believe an all-cash option provides superior value and flexibility for (Inter) shareholders, as well as enhanced certainty and a clean exit for those institutional and event-driven investors with near-term mandates,” Brookfield said.

The Alberta Securities Commission will hear Brookfield’s argument against the break fee, under which Inter would pay Pembina C$350mn if it walks away from Pembina’s offer, on July 7. Brookfield’s latest offer is open until July 13.