All regulatory conditions have been satisfied prior to closing
Pembina Pipeline Corporation announced a business combination with Veresen Inc. to create one of the largest energy infrastructure companies in Canada, according to a press release.
“With increased size and scale, the combined companies create a platform in which we can pursue expanded growth opportunities while continuing to support future dividend growth and value creation for our shareholders.” said Mick Dilger, Pembina’s president and CEO.
Pembina acquired all issued and outstanding common shares of Veresen, valued at approximately $9.4 billion, including the assumption of their debt (including subsidiary debt) and preferred shares.
“We have recently placed $2.8 billion of projects into service and expect to place approximately $2 billion of additional projects into service by early 2018. Pembina has truly become a leading North American infrastructure company and is well positioned to deliver top-tier performance going forward. Our future is bright and I am excited to realize our expected near term transformational results,” concluded Mr. Dilger.
Veresen amalgamated into Pembina and the outstanding preferred shares have been exchanged for Pembina preferred shares with the same terms and conditions, and will be listed on the Toronto Stock Exchange under the symbols PPL.PR.O.
Each Veresen common shareholder who elected cash will receive $6.4314, and approximately 0.2809 of a Pembina common share, multiplied by the number of Veresen common shares held by such shareholder.
For certainty, the shareholder will exchange a portion of their shares for cash and a portion for Pembina common shares pursuant to the terms of the Arrangement.
Shareholders who elected Pembina common shares or did not make an election will not be subject to pro-rationing and will receive 0.4287 of a Pembina common share for each Veresen common share held.
The common shareholder dividend payable to Veresen common shareholders of record on Sept. 25, 2017 of $0.0833 per common share, will be paid to such shareholders on Oct. 23, 2017.
