Canadian Manufacturing

Pembina Pipeline to buy Veresen in $9.7B deal

Once completed, the combination cash-and-stock deal is forecast to raise Pembina's dividend by 5.9 per cent

May 1, 2017  by The Canadian Press

CALGARY—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, also based in Calgary, is an energy infrastructure services firm which focuses on pipelines, midstream and power generation services.

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.

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