Pembina Pipeline Corporation and Inter Pipeline Ltd. announced on June 1 that they have entered into an arrangement agreement for Pembina to acquire all of the issued and outstanding shares of Inter Pipeline in a share-for-share transaction. The Transaction will create one of the largest energy infrastructure companies in Canada, with a pro forma enterprise value of $53 billion and a diversified and integrated asset base that can support and grow an extensive value chain for natural gas, natural gas liquids and crude oil, from wellhead to end user.
“The Transaction is highly strategic for both Pembina and Inter Pipeline, providing clear visibility to creating long-term sustainable value for our respective shareholders,” said Randy Findlay, Pembina’s Chair of the Board of Directors.
The Transaction is valued at approximately $15.2 billion, including the assumption of Inter Pipeline’s debt. Pembina and Inter Pipeline shareholders are expected to own 72 percent and 28 percent of the combined company, respectively. The combined entity will continue to be led by Pembina’s senior executive team. Representation from Inter Pipeline on Pembina’s board of directors will be determined prior to closing of the Transaction.