Veresen shareholders approve takeover by Pembina

Veresen shareholders have approved the proposed takeover of the company by Pembina Pipeline Corporation with 99 percent of cast votes in favor of the combination. 

The two companies said the combination would create one of the largest energy infrastructure companies in Canada, with the deal valued at C$9.7 billion ($7.5 billion).

Under the terms of the transaction, Pembina will acquire all of the issued and outstanding common shares of Veresen in exchange for either 0.4287 of a common share of Pembina or $18.65 in cash.

The deal gives Pembina a 100 percent ownership of the proposed Jordan Cove liquefied natural gas (LNG) project in Oregon, which is estimated to be worth about $6 billion.

The United States Federal Energy Regulatory Commission (FERC) said last month it will prepare an environmental impact statement for the project.

The LNG terminal would include five liquefaction trains and two full containment LNG storage tanks. It would be designed to liquefy about 1.04 billion cubic feet per day (7.8 mtpa) of LNG for export to markets across the Pacific Rim.

Pembina and Veresen both noted that the transaction is expected to close late in the third quarter or early in the fourth quarter of 2017.

1 CAD = 0.774604 USD

LNG World News Staff