Brookfield Infrastructure Partners LP has made an unsolicited offer to take Inter Pipeline Ltd. private with a proposal to buy the stake in the company it does not already own.
The offer implies a value for Inter Pipeline of $7.1 billion.
Brookfield Infrastructure is offering $16.50 per share in cash or 0.206 of a Brookfield Infrastructure Corp. class A exchangeable share. The maximum cash available under the plan is $4.9 billion.
Inter Pipeline shares closed at $13.40 on the Toronto Stock Exchange on Wednesday.
Brookfield Infrastructure already owns 41.8 million Inter Pipeline shares or 9.75 per cent of its outstanding shares, plus a cash-settled total return swap that give it economic exposure to an additional 42.5 million Inter Pipeline shares.
The company said it first approached Inter Pipeline September 2020, but failed to reach an agreement on a deal. It says it remains open to engaging directly with the company.
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