Pipeline and storage space for crude was in high demand in Western Canada before the COVID-19 pandemic hit and caused both oil demand and supply to fall sharply. The region’s production has rebounded quickly this year.
However, Inter Pipeline’s share performance and credit profile have remained strained despite the recovery in commodity prices, Brookfield said.
The infrastructure company, which owns and operates assets in the utilities, transport and storage sectors, offered C$16.50 per Inter Pipeline share, a 23.13% premium to the closing price of the Canadian company’s shares on Wednesday.
Brookfield Infrastructure said it was willing to consider increasing its offer if it was granted access to due diligence.
($1 = 1.2697 Canadian dollars) Reporting by Arathy S Nair in Bengaluru; Editing by Aditya Soni