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PPC Announces to Acquire Kinder Morgan Canada & the Cochin Pipeline

Gasoil News - Published on Fri, 23 Aug 2019

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Pembina Pipeline Corporation announced that it has entered into agreements pursuant to which it will acquire Kinder Morgan Canada Limited and the US portion of the Cochin Pipeline system from Kinder Morgan Inc for a total purchase price of approximately USD 4.35 billion. The Transaction values Kinder Morgan Canada at approximately USD 2.3 billion, or USD 15.02 per share, based on an all-share exchange ratio of 0.3068 of a common share of Pembina per KML security and Pembina's 30-day volume weighted average price on the date hereof; and Cochin US at approximately USD 2.05 billion for cash consideration.

Subject to closing of the Transaction, Pembina's board of directors has also approved a USD 0.01 per common share, or approximately five percent, increase to its monthly common share dividend rate.

Through the Transaction, Pembina will acquire strategically located assets including the Cochin Pipeline System, the Edmonton storage and terminal business and Vancouver Wharves, a bulk storage and export/import business. Upon closing, the Transaction immediately provides Pembina with well-established business platforms and substantial opportunities for growth.

High Quality, Integrated Assets
The Cochin mainline system represents a fully contracted cross-border pipeline system that is highly strategic as it connects Pembina's Channahon, Bakken and Edmonton area assets and is connected to markets in Mont Belvieu, Conway and Edmonton. Further, there is future potential to connect the eastern leg of the Cochin Pipeline System to Pembina's assets and markets in Sarnia, Ontario.

As well, the Corporate Acquisition includes a significant crude oil storage and terminalling business in Western Canada's key energy complex, which connects Pembina's conventional and oilsands pipelines to all major export pipelines, providing increased flexibility and greater egress options to customers.

Finally, there is potential for further integration of Vancouver Wharves assets into the Pembina value chain.

Source :

Posted By : Sanju Moirangthem on Fri, 23 Aug 2019
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