TRP - TC Energy shareholders approve spinoff of South Bow and elect Board of Directors at the 2024 annual and special meeting | Benzinga
CALGARY, Alberta, June 04, 2024 (GLOBE NEWSWIRE) -- News Release – TC Energy Corporation ((TSX, NYSE:TRP) (TC Energy or the Company) is pleased to announce today that 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 favour of the Arrangement Resolution, pursuant to which, among other things, 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 (South Bow), 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," said François Poirier, President and CEO of TC Energy. "This is an important milestone as we continue to move forward with our plan to separate into two highly focused, premier energy infrastructure companies. 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."
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," said Bevin Wirzba, Intended President and Chief Executive Officer of South Bow. "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."
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. To learn more about South Bow, visit www.southbow.com.
Furthermore, each of the following 13 nominees were elected as directors of TC Energy on a vote by ballot to serve until the next annual meeting of shareholders of TC Energy or until their successors are elected or earlier appointed:
| Nominee |
| # Votes For |
| % Votes For |
| # Votes Against |