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Pembina Pipeline Corporation (PPL)
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Inter Pipeline Ltd. (IPL)
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Brookfield Infrastructure Corporation Class A Exchangeable Subordinate Voting Shares (BIPC)
Q: Hello 5i Team
With respect to the ongoing take-over/merger of IPL by BIPC/PPL, I have the following questions:
1 – There appears there is a time lag of 22 days from the filing date of BIPC “Notice of Variation” to the meeting date (i.e. third Notice of Variation filed July 15 to proposed meeting date of August 06). Is this a stipulated regulatory
requirement?
2 – If the required notice period is 21 or 22 days, then is it correct that PPL would NOT be able to revise its offer of 0.5 shares of PPL for each IPL share prior to BIPC meeting date?
3 – At current prices, for BIPC/IPL/PPL, who is buying/selling IPL in the market?
If an IPL purchaser would want to vote for the BIPC offer, they could buy shares of BIPC cheaper than the equivalent amount of BIPC they would receive in the BIPC offer.
If an IPL purchaser would want to vote for the PPL offer, they could buy shares of PPL cheaper than they could buy equivalent amount of IPL shares.
It would make sense for existing shareholders (from prior to announcement) to hold and wait for the results of the bidding war unless one wants cash from either proposal.
4 – What are 5i thoughts on who will ultimately win this takeover battle?
Thanks
With respect to the ongoing take-over/merger of IPL by BIPC/PPL, I have the following questions:
1 – There appears there is a time lag of 22 days from the filing date of BIPC “Notice of Variation” to the meeting date (i.e. third Notice of Variation filed July 15 to proposed meeting date of August 06). Is this a stipulated regulatory
requirement?
2 – If the required notice period is 21 or 22 days, then is it correct that PPL would NOT be able to revise its offer of 0.5 shares of PPL for each IPL share prior to BIPC meeting date?
3 – At current prices, for BIPC/IPL/PPL, who is buying/selling IPL in the market?
If an IPL purchaser would want to vote for the BIPC offer, they could buy shares of BIPC cheaper than the equivalent amount of BIPC they would receive in the BIPC offer.
If an IPL purchaser would want to vote for the PPL offer, they could buy shares of PPL cheaper than they could buy equivalent amount of IPL shares.
It would make sense for existing shareholders (from prior to announcement) to hold and wait for the results of the bidding war unless one wants cash from either proposal.
4 – What are 5i thoughts on who will ultimately win this takeover battle?
Thanks
