Pembina Pipeline Corp PMMBF

Portfolio Update; Involves Pembina

[ace1mccoy]

NYSE's Center Coast Brookfield MLP & Energy Infrastructure Fund Detailed Portfolio Update; Involves Pembina 2022-03-17 06:59:40 AM ET (MT Newswires)

 

06:59 AM EDT, 03/17/2022 (MT Newswires) -- Center Coast Brookfield MLP & Energy Infrastructure Fund (NYSE: CEN) overnight Wednesday noted that it had learned on March 1, 2022, of a definitive agreement outlining a potential transaction involving its investment in KKR Eagle Co-Invest LP, which is a private vehicle through which CEN holds an indirect investment in Veresen Midstream Limited Partnership, a privately owned Canadian natural gas and natural gas liquids midstream business. Upon the consummation of this transaction, VMLP -- which focuses on providing natural gas and natural gas liquids processing service solutions to the producer community in Alberta and British Columbia, Canada -- is expected to be combined with Energy Transfer Canada and additional natural gas gathering and processing assets currently owned by Pembina Pipeline Corporation (TSX: PPL, PBA). The resulting joint venture will be one of the largest, most diversified natural gas infrastructure platforms in Canada and will be 60% owned by PPL and 40% owned by Kohlberg Kravis Roberts & Co. L.P. and its funds and affiliates, including the Private Investment. According to a statement, NewCo is expected to have a "better commercial and leverage profile and benefit from increased efficiencies and economies of scale, creating a platform of critical natural gas infrastructure with greater customer diversity, significant synergies, reduced costs, and a well-respected management team." PPL and KKR have further communicated that NewCo will integrate Environmental, Social and Governance (ESG) considerations into its governance structure, and the assets will be included in PPL's target of achieving a 30% reduction in greenhouse gas emissions intensity by 2030, against a 2019 baseline. PPL and KKR have indicated that the transaction is expected to close in the second half of 2022, subject to customary closing conditions and regulatory approvals.

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Brookfield has a position through one of their funds.  They don't seem to be objecting.  Their initial assessment is that the deal will be modestly accretive.