Teekay Offshore is set to become Altera Infrastructure as Brookfield Business Partners completes its controversial takeover of the New York-listed company.
"This marks a new chapter for us. We are establishing a global energy infrastructure services company that will create long term value for its stakeholders," chief executive Ingvild Saether said.
Toronto-based private equity firm Brookfield first took a position in Teekay Offshore in July 2017, recapitalizing the company in exchange for a 60% stake. Its ownership grew to 77.1% in May 2019 after buying out Teekay Corp for $100m.
It then offered $1.05 per share to the remaining shareholders in an effort to get to 80%, thus triggering a call right on the remaining shares. In October, it improved the offer to $1.55 per share or for new shares with limited voting rights and transferability.
Both offers riled shareholders, who accused Brookfield of turning from saviour to predator in a matter of months and battering minority shareholders while trying to "abscond" with the company.
In two separate lawsuits, shareholders accused Teekay Offshore and its board of trying to squeeze out minority shareholders for pennies on the dollar with some arguing the company was worth at least $4 per share.
Neither plaintiffs nor attorneys returned TradeWinds' requests for comment, but the lawsuits appear to be ongoing.
The company said that it owned all Class B common units and 98.7% of outstanding common units, with 1.3% of holders opting for the new shares.
Teekay Offshore shares had never traded below $1.06. When trading was halted Thursday, shares were trading at $1.54.
As part of the takeover, longtime directors David Lemmon and Kenneth Hvid, with 23 total years on the board, have resigned. Bill Utt, current board chairman, will replace Lemmon on Teekay Offshore's audit committee.
The company will begin using the Altera name 24 March, as part of a consolidated group of companies under the Altera Infrastructure umbrella.
