Brookfield Infrastructure to Acquire Western Canadian Midstream Business
July 04 2018 - 9:00AM
Brookfield Infrastructure (NYSE:BIP) (TSX:BIP.UN) and its
institutional partners (collectively, “Brookfield”), today
announced that it has entered into a definitive agreement to
acquire 100% of Enbridge Inc.’s Western Canadian natural gas
gathering and processing business (the “Canadian Midstream
Business”) for an enterprise value of C$4.31 billion (approximately
US$3.3 billion) subject to customary closing adjustments.
Brookfield Infrastructure’s equity commitment
towards this investment will be approximately $500 million,
representing an approximate 30% interest in the business.
Brookfield Infrastructure will fund its share of the transaction
with its significant available liquidity comprised of, among other
things, proceeds from the sale of its interest in Transelec, which
closed in March 2018.
“This investment represents an exciting
opportunity to invest in scale in one of North America’s leading
gas gathering and processing businesses based in Western
Canada. The business is strategically positioned for the
continued development of the prolific Montney Basin,” said Sam
Pollock, CEO of Brookfield Infrastructure. “Cash flows from the
business are anchored by a firm contract profile with a weighted
average life of 10 years.”
The Canadian Midstream Business includes 19
natural gas processing facilities with total operating processing
capacity of 3.3 Bcf/d and 3,550 kilometers of gathering pipelines,
with connectivity to major demand markets including the U.S.
Pacific Northwest, U.S. Midwest and Western Canada.
Closing of the transaction remains subject to a
number of customary conditions, including certain regulatory
approvals. The transaction is expected to close in two phases, with
the facilities subject to provincial regulation expected to achieve
financial close in 2018 and closing of those subject to federal
regulation anticipated in mid-2019.
Brookfield Infrastructure
Partners is a leading global infrastructure company that
owns and operates high quality, long-life assets in the utilities,
transport, energy and communications infrastructure sectors across
North and South America, Asia Pacific and Europe. We are focused on
assets that generate stable cash flows and require minimal
maintenance capital expenditures. Brookfield Infrastructure
Partners is listed on the New York and Toronto stock exchanges.
Further information is available at
www.brookfieldinfrastructure.com.
Brookfield Infrastructure is the flagship listed
infrastructure company of Brookfield Asset Management, a leading
global alternative asset manager with approximately $285 billion of
assets under management. For more information, go to
www.brookfield.com
For more information, please visit our website
at www.brookfieldinfrastructure.com or contact:
Media:Claire Holland Vice President,
Communications Tel: (416) 369-8236 Email:
claire.holland@brookfield.com |
Investors:Rene Lubianski Senior Vice
President, Corporate Development Tel: (416) 956-5196 Email:
rene.lubianski@brookfield.com |
Note: This news release contains forward-looking
information within the meaning of Canadian provincial securities
laws and “forward-looking statements” within the meaning of Section
27A of the U.S. Securities Act of 1933, as amended,
Section 21E of the U.S. Securities Exchange Act of 1934,
as amended, “safe harbor” provisions of the United States Private
Securities Litigation Reform Act of 1995 and in any applicable
Canadian securities regulations. The words “will”, “target”,
“future”, “growth”, “expect”, “believe”, “may”, derivatives
thereof and other expressions which are predictions of or indicate
future events, trends or prospects and which do not relate to
historical matters, identify the above mentioned and other
forward-looking statements. Forward-looking statements in
this news release may include statements regarding the likelihood
and timing of successfully completing the transaction referred to
in this news release, the future performance of the business
including its potential for growth and currently undeveloped
resource base. Although Brookfield Infrastructure believes that
these forward-looking statements and information are based upon
reasonable assumptions and expectations, the reader should not
place undue reliance on them, or any other forward-looking
statements or information in this news release. The future
performance and prospects of Brookfield Infrastructure are subject
to a number of known and unknown risks and uncertainties.
Factors that could cause actual results of Brookfield
Infrastructure to differ materially from those contemplated or
implied by the statements in this news release include the
inability to complete the transaction referred to in this news
release, including as a result of failure to receive the required
regulatory approvals and consents in a timely manner (which cannot
be assured), general economic conditions in the jurisdictions in
which we operate and elsewhere which may impact the markets for our
products and services, including the products and services provided
by the business that is the subject of this news release, the
ability to achieve growth within Brookfield Infrastructure’s
businesses and in particular completion on time and on budget of
various large capital projects, which themselves depend on access
to capital and continuing favourable commodity prices, the impact
of market conditions on our businesses, the fact that success of
Brookfield Infrastructure is dependent on market demand for an
infrastructure company, which is unknown and the ability to
effectively complete new acquisitions in the competitive
infrastructure space and to integrate acquisitions into existing
operations and other risks and factors described in the documents
filed by Brookfield Infrastructure with the securities regulators
in Canada and the United States including under
“Risk Factors” in Brookfield Infrastructure’s most recent Annual
Report on Form 20-F and other risks and factors that are described
therein. Except as required by law, Brookfield Infrastructure
undertakes no obligation to publicly update or revise any
forward-looking statements or information, whether as a result of
new information, future events or otherwise.
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