By Michael Dabaie
Pembina Pipeline Corp. said it will acquire Inter Pipeline Ltd. in a share-for-share deal that values Inter Pipeline common shares at about 8.3 billion Canadian dollars ($6.88 billion).
Pembina said the deal values Inter Pipeline at C$19.45 a share, based on the closing price of Pembina's common shares on May 31.
The transaction would create an energy infrastructure company with a pro forma enterprise value of C$53 billion, Pembina said.
Brookfield Infrastructure Partners L.P. in February said it commenced a formal offer to acquire all of the outstanding common shares of Inter Pipeline Ltd. Brookfield declined to comment Tuesday.
Pembina said there would be near-term synergies of C$150 million to C$200 million annually, which is said it expects to immediately contribute to boosting adjusted cash flow per share.
The transaction is valued at about C$15.2 billion, including the assumption of Inter Pipeline's debt. Pembina and Inter Pipeline shareholders would own 72% and 28% of the combined company, respectively.
The combined entity would continue to be led by Pembina's senior executive team, Pembina said.
Write to Michael Dabaie at michael.dabaie@wsj.com
(END) Dow Jones Newswires
06-01-21 0951ET