Calgary-based Pembina Pipeline to buy Veresen in $9.7-billion deal

The logo for Calgary-based Pembina Pipeline Corporation is shown. CREDIT:

Pembina Pipeline Corp. is making a play to buy Veresen Inc. in a friendly deal valued at about $9.7 billion.

The Calgary-based company is offering the equivalent of $18.65 per Veresen share — in a combination of cash and Pembina stock.

Veresen shareholders would receive $4.8494 in cash and the rest in Pembina stock, assuming the maximum $1.523 billion in cash is issued.

The offer is 22.5 per cent above Veresen’s closing price of $15.23 on Friday.

Pembina chairman Randy Findlay says he expects the company’s dividend will increase by 5.9 per cent once the deal closes.

Sponsored content