TC Energy Shareholders Approve Spinoff of South Bow
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TC Energy said its shareholders voted to approve the spinoff of the company’s liquids pipelines business and elected TC Energy’s board of directors at its 2024 annual and special meeting of shareholders.
TC Energy shareholders voted in favor of the arrangement resolution. TC Energy shareholders will receive one new common share of TC Energy and 0.2 of a common share in a new public company named South Bow Corporation, in exchange for each common share of TC Energy held.
“Today, our shareholders have affirmed their support of our board and management team’s vision for the futures of TC Energy and South Bow. This is an important milestone as we continue to move forward with our plan to separate into two highly focused, premier energy infrastructure companies,” said François Poirier, president and CEO of TC Energy.
“Through this separation, both companies will continue to deliver shareholder value in the form of compelling dividends, while focusing on meeting the growing demand for all forms of secure, affordable and sustainable energy in North America and around the globe,” added Poirier.
This critical vote enables TC Energy and South Bow to continue moving forward with their anticipated separation, which is expected to occur in late-third quarter to mid-fourth quarter of 2024.
TC Energy’s board of directors and management team are confident the proposed separation will enhance long-term value for TC Energy shareholders by creating two independent, investment-grade, publicly listed companies. Each company will be structured to reflect differentiated value propositions and the ability to pursue and achieve greater success than a combined entity by executing tailored strategies targeted to distinct customer sets.
“I thank our shareholders for supporting South Bow’s progress in becoming a standalone company. With our strategic franchise corridor, South Bow is positioned to deliver a compelling shareholder return through a sustainable dividend, steady growth outlook and paying down debt,” said Bevin Wirzba, intended president and chief executive officer of South Bow.
The spinoff has received the requisite tax rulings in Canada and the U.S. and remains subject to receipt of necessary regulatory and court approvals and satisfaction of other customary closing conditions.
TC Energy is a team of 7,000+ energy problem solvers working to move, generate, and store the energy North America relies on. Today, they’re taking action to make that energy more sustainable and more secure. They’re innovating and modernizing to reduce emissions from its business. And, they’re delivering new energy solutions — from natural gas and renewables to carbon capture and hydrogen — to help other businesses and industries decarbonize too. Along the way, they invest in communities and partner with its neighbors, customers, and governments to build the energy system of the future.
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