TC Energy has made a non-binding offer to acquire all the upstanding shares of the master limited partnership TC PipeLines LP in exchange for TC Energy common shares, Kallanish Energy reports.
The proposal was submitted to the board of directors of the general partner of TC PipeLines.
It is a Delaware-based MLP with interests in eight federally regulated interstate natural gas pipelines serving markets across the United States.
That plan values TC PipeLines at about $1.48 billion.
Alberta-based TC Energy already owns a 23.96% stake in TC PipeLines.
Under the plan, TC PipeLines shareholders will get 0.650 common shares of TC Energy for every share of TC PipeLines common stock.
The implied value would be $27.31 per common share based on the Oct. 2 closing price. That reflects a premium of 7.5% to the exchange ratio implied in the 20-day volume weighted average price of the stock prices.
A conflicts committee of independent directors will review the offer. That is because TC PipeLines is an indirect subsidiary of TC Energy.
The offer must also be approved by the TC PipeLines board of directors and its shareholders.
This post appeared first on Kallanish Energy News.