Canada's Inter Pipeline Ltd said on Tuesday it will sell a major portion of its European bulk liquid storage business to Spain-based CLH Group for 420 million pounds ($537.73 million).
The pipeline operator had halted the sale in March, stating potential buyers of the business had been significantly affected by the COVID-19 pandemic and that it was not the right time to pursue a major pan-European transaction.
The sale includes all of Inter's bulk liquid storage and handling assets in the UK, Ireland, the Netherlands and Germany, totaling 15 storage terminals and about 18 million barrels of storage capacity.
Proceeds from the sale will be used to cut debt, improve the balance sheet and help with Inter's spending plans, including on its Heartland Petrochemical Complex in Alberta, the company said.
After the close of the deal, expected in fourth quarter, Inter will retain its 8 terminals in Sweden and Denmark comprising about 19 million barrels of aggregate storage capacity.
($1 = 0.7811 pounds)
(Reporting by Shruti Sonal in Bengaluru; Editing by Krishna Chandra Eluri) ((Shruti.Sonal@thomsonreuters.com; Twitter: @shrutisonal26;))
