Winnipeg Free Press By: Dan Healing, The Canadian Press Posted:
Last Modified: 1:00 PM CDT Thursday, Apr. 22, 2021 Save to Read Later
CALGARY - Inter Pipeline Ltd. says it has signed take-or-pay contracts covering about 60 per cent of production from the Heartland Petrochemical Complex it s building northeast of Edmonton as it continues to fight off a hostile takeover bid by Brookfield Infrastructure Partners LP.
Inter Pipeline s Heartland Petrochemical Complex in Fort Saskatchewan, Alta. is shown in this undated handout photo. THE CANADIAN PRESS/HO, Inter Pipeline MANDATORY CREDIT
CALGARY - Inter Pipeline Ltd. says it has signed take-or-pay contracts covering about 60 per cent of production from the Heartland Petrochemical Complex it s building northeast of Edmonton as it continues to fight off a hostile takeover bid by Brookfield Infrastructure Partners LP.
Dan Healing
Inter Pipeline s Heartland Petrochemical Complex in Fort Saskatchewan, Alta. is shown in this undated handout photo. THE CANADIAN PRESS/HO, Inter Pipeline MANDATORY CREDIT April 22, 2021 - 11:00 AM
CALGARY - Inter Pipeline Ltd. says it has signed take-or-pay contracts covering about 60 per cent of production from the Heartland Petrochemical Complex it s building northeast of Edmonton as it continues to fight off a hostile takeover bid by Brookfield Infrastructure Partners LP.
The Calgary-based company said Thursday the deals with a total of seven parties have an average duration of nine years and it is confident it will achieve its goal of 70 per cent contracted production before the plant, designed to convert propane into polypropylene plastic pellets, starts up in early 2022.
Our announcement today is very positive for shareholders. It provides clarity around the success we ve had in creating what we call more like an infrastructure-based contracting model for the plant, Inter CEO Christian Bayle said in an interview.
The contracts are with a mixture of North American polypropylene consumers as well as Canadian and multinational producers who will pay to have their propane transformed into polypropylene at the plant and then share in the profit when that product goes to market, he said.
When Brookfield made its takeover offer in February of $16.50 per share in cash or 0.206 of a Brookfield Infrastructure Corp. class-A exchangeable share (a deal that values Inter at $7.1 billion), it said it would consider increasing the bid if Inter can substantiate growth and commercialization plans for the $4-billion Heartland project.
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CALGARY, Alberta (Reuters) - Canada’s Inter Pipeline Ltd, which is fighting a hostile takeover bid from Brookfield Infrastructure Partners, on Thursday said it has signed contracts with buyers for 60% of production from its Alberta petrochemical plant.
The C$4 billion ($3.20 billion) Heartland Petrochemical Project has emerged as a central asset in Brookfield’s bid to buy the Calgary-based energy infrastructure company. Inter says the Heartland plant will open up new markets and boost earnings, but cost overruns and slow progress in securing buyers for the polypropylene pellets it will produce have weighed on the company’s stock.
Chief Executive Christian Bayle said the contract announcement made Inter more valuable.
Inter Pipeline reports 60% of Heartland plant is contracted bnnbloomberg.ca - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from bnnbloomberg.ca Daily Mail and Mail on Sunday newspapers.