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Inter Pipeline Ltd ’s ambitious petrochemical plant was meant to unlock new markets, instead it has left the Canadian company battling cost overruns and vulnerable to a hostile C$7.08 billion ($5.64 billion) takeover from Brookfield Infrastructure Partners. Some investors have ruled out a rival bid to Monday’s offer for the oil and gas transportation company, and expect Brookfield to snap up Inter just before its newest asset, the Heartland Petrochemical Complex, comes into service. The C$4 billion Heartland plant near Edmonton, Alberta, is Inter’s first petrochemical project and its largest ever capital investment. It is due for completion early next year, several months behind schedule and C$500 million over budget as a result of the COVID-19 pandemic. Heartland will boost Inter’s adjusted annual EBITDA, which are earnings before certain items are taken into account, by C$500 million or roughly 50% from 2020 levels. But the project’s cost is weighing on the company’s balance sheet and a lack of information on sales contracts has spooked many investors. The pandemic also stalled Inter’s search for a joint venture partner for Heartland, leaving the company exposed to cost and construction risks. That has hurt its shares, some investors say, making it an […]
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