Energy Income Partners, LLC Notifies TC PipeLines, LP Board of Its Intent to Vote Against Proposed Merger with TC Energy Corporation

Rhea-AI Summary

Energy Income Partners (EIP) has informed TC PipeLines, LP's Board of Directors of its opposition to the proposed merger with TC Energy Corporation. EIP, the largest non-affiliated unitholder of TCP with over 10% ownership, argues that the merger consideration of 0.70 common shares of TRP per unit of TCP significantly undervalues TCP's assets and growth opportunities. EIP has maintained its position in TCP for nearly 15 years, highlighting concerns over the adequacy of the offer.

Positive

• None.

Negative

• EIP opposes the merger, which may create uncertainty around the transaction.
• The offered merger consideration is deemed inadequate, potentially undervaluing TCP's assets and growth.

WESTPORT, Conn., Feb. 19, 2021 /PRNewswire/ -- Today, Energy Income Partners ("EIP") advised the Board of Directors of the general partner of TC PipeLines, LP (NYSE: TCP) of its objections to and its intent to vote AGAINST the proposal to approve and adopt the Merger Agreement with TC Energy Corporation (NYSE: TRP).  A copy of EIP's letter notifying the Board of its intent and detailing its objections are available on EIP's website, www.eipinvestments.com.

EIP is the largest non–affiliated unitholder of TCP, owning more than 10% of the units outstanding and has maintained a position in the company for nearly 15 years. EIP believes TRP's offer of 0.70 common shares of TRP for each unit of TCP is inadequate because the consideration currently offered significantly undervalues TCP's assets and existing organic growth opportunities. 

About EIP:

Based in Westport, Connecticut, EIP is an asset manager founded in 2003 that focuses specifically on energy infrastructure.  EIP's seven member investment team collectively has significant experience in the energy, pipeline, and utility industries.  As of January 31, 2021, EIP has $3.9 billion of assets under management. 

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SOURCE Energy Income Partners

FAQ

What is the reason behind EIP's opposition to the TCP and TRP merger?

EIP believes the offered merger consideration significantly undervalues TCP's assets and existing growth opportunities.

What percentage of TCP units does EIP own?

EIP owns more than 10% of the outstanding units of TC PipeLines, LP.

How long has EIP maintained a position in TCP?

EIP has held a position in TC PipeLines for nearly 15 years.

What is the merger consideration offered by TRP for TCP?

The merger consideration is 0.70 common shares of TC Energy for each unit of TC PipeLines.

When did EIP notify the TCP Board of their intent to vote against the merger?

EIP notified the TCP Board on February 19, 2021.