Advises shareholders to take no action
CALGARY, AB, Feb. 11, 2021 /CNW/ - Inter Pipeline Ltd. ("Inter
Pipeline" or the "Company") (TSX: IPL) is responding to the news
release by Brookfield Infrastructure Partners L.P. ("Brookfield")
regarding Brookfield's intention
to make an unsolicited offer to acquire all of the outstanding
common shares of the Company not already owned by Brookfield.
The Company confirms that it previously received unsolicited,
non-binding and conditional proposals from Brookfield in the range of $17.00 to $18.25
per share (the "Conditional Proposals"). Upon receipt of the
Conditional Proposals, consistent with its fiduciary duty to act in
the best interests of all shareholders, the Company's Board of
Directors (the "Board") engaged legal and financial advisors to
assist the Company in assessing the Conditional Proposals. In
response, based on a comprehensive assessment of the Conditional
Proposals, the Board informed Brookfield that they did not reflect the
intrinsic value of the Company and were not sufficiently
pre-emptive to grant Brookfield
exclusivity.
The Board reminds shareholders that no formal offer has been
made by Brookfield, and as such
there is no need for shareholders to take any action at this time.
When a formal offer is made, it will be reviewed by the Board with
its legal and financial advisors, and a formal recommendation by
the Board will be made to shareholders in due course.
Advisors
Inter Pipeline has engaged TD Securities as
its financial advisor and Burnet, Duckworth & Palmer LLP and
Dentons Canada LLP are acting as legal advisors to Inter Pipeline
and its Board of Directors. Kingsdale Advisors is engaged as
strategic shareholder and communications advisor to the
Company.
About Inter Pipeline Ltd.
Inter Pipeline is a major
petroleum transportation and natural gas liquids processing
business based in Calgary, Alberta,
Canada. Inter Pipeline owns and operates energy
infrastructure assets in western Canada and is building the Heartland
Petrochemical Complex — Canada's
first integrated propane dehydrogenation and polypropylene
facility. Inter Pipeline is a member of the S&P/TSX 60 Index
and its common shares trade on the Toronto Stock Exchange under the
symbol IPL. www.interpipeline.com
Contact Information
Investor Relations:
Jeremy
Roberge
Vice President, Finance and Investor Relations
Email: investorrelations@interpipeline.com
Tel: 403-290-6015 or 1-866-716-7473
Media Relations:
Breanne
Oliver
Director, Corporate Communications
Email: mediarelations@interpipeline.com
Tel: 587-475-1118 or 1-866-716-7473
Cautionary Note Regarding Forward Looking
Statements
Certain information contained herein constitutes
forward-looking statements and information (collectively,
"forward-looking statements") within the meaning of applicable
securities legislation that involve known and unknown risks,
assumptions, uncertainties and other factors. Forward-looking
statements often contain terms such as "may", "will", "should",
"anticipate", "expects" and similar expressions. Readers are
cautioned not to place undue reliance on forward-looking
statements. Such statements reflect the current views of Inter
Pipeline with respect to future events and are subject to certain
risks, uncertainties and assumptions that could cause Inter
Pipeline's results to differ materially from those expressed in the
forward-looking statements. Factors that could cause actual results
to vary from forward-looking statements or may affect the
operations, performance, development and results of Inter
Pipeline's businesses include, among other things, risks and
assumptions associated with operations, such as Inter Pipeline's
ability to successfully implement its strategic initiatives and
achieve expected benefits therefrom or otherwise be implemented by
Inter Pipeline, including the further development of
its projects and facilities; assumptions concerning operational
reliability; the potential delays of and costs of overruns on
construction projects (including Heartland Petrochemical Complex)
and future expansions of Inter Pipeline's assets; the realization
of the anticipated benefits of acquisitions and other projects
Inter Pipeline is developing; the timing, financing and completion
of acquisitions, transactions or other projects Inter Pipeline is
pursuing; risks inherent in Inter Pipeline's Canadian and foreign
operations; risks associated with the failure to finalize formal
agreements with counterparties in circumstances where letters of
intent or similar agreements have been executed and announced by
Inter Pipeline; Inter Pipeline's ability to generate sufficient
cash flow from operations to meet its current and future
obligations; Inter Pipeline's ability to maintain its current level
of cash dividends to its shareholders; Inter Pipeline's ability to
access sources of debt and equity capital; Inter Pipeline's ability
to make capital investments and the amounts of capital investments;
Inter Pipeline's ability to maintain its credit ratings; the
availability and price of labour, equipment and construction
materials; the status, credit risk and continued existence of
counterparties having contracts with Inter Pipeline and its
affiliates and their performance of such contracts; competitive
factors, pricing pressures and supply and demand in the oil and gas
transportation, natural gas liquids processing and bulk liquid
storage industries; increases in maintenance, operating or
financing costs; availability of adequate levels of insurance;
difficulty in obtaining necessary regulatory approvals or land
access rights and maintenance of support of such approvals and
rights; risks of war, hostilities, civil insurrection, instability
and political and economic conditions in or affecting countries in
which Inter Pipeline and its affiliates operate; severe weather
conditions and risks related to climate change; terrorist threats;
risks associated with technology and cyber security; availability
of energy commodities; volatility of and assumptions regarding
prices of energy commodities; fluctuations in currency and interest
rates; changes in laws and regulations, including environmental,
regulatory and taxation laws, and the interpretation of such
changes to Inter Pipeline's business; the risks associated with
existing and potential or threatened future lawsuits and regulatory
actions against Inter Pipeline and its affiliates; general economic
and business conditions; the effects and impacts of the COVID-19
pandemic as further described in Inter Pipeline's reports and
filings, the extent and duration of which are uncertain at this
time, on Inter Pipeline's business and general economic and
business conditions and markets, and such other risk factors,
assumptions and uncertainties described from time to time in Inter
Pipeline's reports and filings with the Canadian securities
regulatory authorities including in Inter Pipeline's most recent
MD&A and Annual Information Form, and other documents it files
from time to time. You can find these documents by referring to
Inter Pipeline's profile on SEDAR (www.sedar.com). Such
information, although considered reasonable by Inter Pipeline at
the time of preparation, may later prove to be incorrect and actual
results may differ materially from those anticipated in the
statements made. For this purpose, any statements that are not
statements of historical fact are deemed to be forward-looking
statements. The forward-looking statements contained in this news
release are made as of the date of this news release, and, except
to the extent required by applicable law, Inter Pipeline assumes no
obligation to update or revise forward-looking statements made
herein or otherwise, whether as a result of new information, future
events, or otherwise. The forward-looking statements contained in
this news release are expressly qualified by this cautionary
note.
SOURCE Inter Pipeline Ltd.