Pembina buying Kinder Morgan Canada, US portion of Cochin pipeline
By CP STAFF
Industry Energy Resource Sector energy gas manufacturing oil PembinaDeal includes an Edmonton storage and terminal business and Vancouver Wharves.
CALGARY — Pembina Pipeline Corp. has signed a deal to buy Kinder Morgan Canada Ltd. and the US portion of the Cochin pipeline system in an agreement it valued at a total of about $4.35 billion.
Upon closing of the deal with Kinder Morgan Inc., Pembina says it will increase is monthly dividend by a penny per share to 21 cents.
The Cochin pipeline runs 2,900 kilometres between Fort Saskatchewan, Alta., and Chicago and has a design capacity of up to 110,000 barrels per day.
The deal also includes an Edmonton storage and terminal business and Vancouver Wharves, a bulk storage and export-import business.
Pembina is offering 0.3068 of a Pembina share per Kinder Morgan Canada share and class B unit. The acquisition is valued at approximately $2.3 billion including the assumption of Kinder Morgan Canada’s preferred shares and outstanding net debt.
In addition, Pembina is paying roughly $2.05 billion in cash for Kinder Morgan Cochin LLC, which holds Cochin US.
