Inter Pipeline explores sale of European bulk liquid storage business
Inter Pipeline Ltd. is exploring the potential sale of its European bulk liquid storage business. Should a sale be completed, proceeds could be used to reduce outstanding debt and finance Inter Pipeline's capital expenditure program, including the Heartland Petrochemical Complex.
"Inter Terminals is a high-quality business with outstanding management and staff. It has made an important contribution to the success and growth of Inter Pipeline over the past 14-years," said Christian Bayle, President and Chief Executive Officer of Inter Pipeline. "Our decision to explore alternatives is consistent with Inter Pipeline's practice of making prudent long-term portfolio management decisions particularly in light of our organic growth initiatives."
Inter Terminals is one of the largest independent bulk liquid storage businesses in Europe with operations in the United Kingdom, Denmark, Sweden, Germany, Netherlands and Ireland. Inter Terminals has approximately 37 million barrels of storage capacity across 23 terminals. These storage terminals are long life infrastructure assets that are strategically located close to established global market hubs, product delivery channels, refineries and chemical production facilities.
This process is not expected to have an impact on Inter Terminals operations which are continuing in the ordinary course. Inter Pipeline has not established a definitive timeline to complete this process and there is no assurance that a transaction will result from it. Inter Pipeline does not intend to comment further with respect to this process unless and until it determines that additional disclosure is appropriate in the circumstances and in accordance with the requirements of applicable securities laws.
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