TransCanada Corp. and Columbia Pipeline Group Inc. has announced that Columbia's stockholders voted to adopt the previously announced merger agreement. Approximately 95.33% of votes cast by Columbia stockholders were in favour of adoption of the merger agreement, which will have TransCanada acquire Columbia for US$25.50 per share of common stock in cash, resulting in an aggregate purchase price of approximately US$13 billion, including the assumption of approximately US$2.8 billion of debt.
"We are very pleased with the support of Columbia's stockholders. Today's vote is an important milestone that moves us closer to completing this acquisition and creating one of North America's leading natural gas transportation and storage companies," said Russ Girling, TransCanada's President and CEO. "Columbia's assets and development projects are managed by a dedicated employee base with experience and a commitment to operating safely, and we look forward to working with them."
Columbia's stockholder approval meets the final major closing condition for the proposed acquisition.
"This acquisition provides TransCanada with a unique opportunity to invest in a proven, growth focused company with a competitively positioned and growing network of regulated natural gas pipelines and storage assets in the Appalachian region, the fastest growing production basin in North America," added Girling. "Together, we bring greater options for our customers to get their products to markets through one of North America's largest natural gas transmission networks. Our combined US$25 billion in near-term growth opportunities supports, and may augment, an expected 8 to 10% annual dividend growth rate for our shareholders through 2020."
Edited from press release by Angharad Lock
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/23062016/stockholders-support-columbia-pipeline-group-acquisition-247/