Comprehensive M&A data with integrated detailed company information

Inter Pipeline confirms takeover, not in talks
Posted on Monday, 12 August 2019 11:48
Canadian petroleum transportation, natural gas liquids processing and bulk liquid storage company Inter Pipeline confirmed recent media reports that it has received an unsolicited, non-binding takeover proposal.

The Calgary-headquartered energy infrastructure operator stressed it is not in negotiations with any third party and said there is no agreement, understanding or arrangement with respect to any such deal.

Shares in Inter Pipeline jumped from CAD 21.74 (USD 16.44) on 7th August to CAD 24.81 and a market capitalisation of CAD 10.23 billion by 9th August following a report by the Globe and Mail.

According to the newspaper, the board rejected a CAD 30.00 apiece cash offer, which valued the entire group at roughly CAD 12.40 billion, from the unnamed suitor.

Inter Pipeline made the announcement at the request of the Investment Industry Regulatory Organization of Canada, following these two days of gains

The Globe and Mail report coincided with the group’s announcement it is exploring a potential sale of its European bulk liquid storage business.

As one of the segment’s largest in Europe with operations in the UK, Denmark, Sweden, Germany, the Netherlands and Ireland, it has about 37.00 million barrels of storage capacity across 23 terminals.

Inter Pipeline is a major petroleum transportation, storage and natural gas liquids processing company with four business segments operating in western Canada and Europe.

The group’s pipeline systems span over 7,800 kilometres in length and transport over 1.40 million barrels per day.

Inter Pipeline had funds from operations of CAD 451.70 million in the six months ended 30th June 2019, compared to CAD 515.70 million in H1 2018.

The company booked net profit of CAD 358.60 million for the period (H1 2018: CAD 278.80 million).

Zephyr, the M&A database published by Bureau van Dijk, shows the deal, if it went ahead, would be among the top ten largest of a global pipeline transportation company.

© Zephus Ltd