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CALGARY _ Pembina Pipeline Corp. has signed a deal to buy Inter Pipeline Ltd. for $8.3 billion in stock.
Under the deal, Inter Pipeline shareholders will receive half a Pembina share for each share of Inter Pipeline that they own.
The offer is valued at $19.45 per Inter Pipeline share based on the closing price of Pembina shares on Monday. Inter Pipeline shares closed at $17.55.
The deal tops an offer for Inter Pipeline made by Brookfield Infrastructure Partners LP that was valued at $16.50 per share.
The boards of Pembina and Inter Pipeline have unanimously approved the deal which also requires approval by a two-thirds majority vote by Inter Pipeline shareholders. A majority vote by Pembina shareholders is also needed.
Existing Pembina shareholders are expected to own 72 per cent of the combined company, while Inter Pipeline shareholders will hold 28 per cent.
This report by The Canadian Press was first published June 1, 2021.
Companies in this story: (TSX:PPL, TSX:IPL)
The Canadian Press
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