Equity Interest Purchase Agreement Update
TC Energy (TRP) has announced a delay in its previously disclosed equity interest purchase transaction with an Indigenous-owned investment partnership. The delay is due to a transaction structuring issue within the NGTL partnership. The deal involves the sale of a minority equity interest in the NGTL System and Foothills Pipeline assets. TC Energy remains committed to developing a transaction that provides meaningful distributions to Indigenous Communities while maintaining the fundamental value of the assets. The company will provide material updates as they become available.
TC Energy (TRP) ha annunciato un ritardo nella transazione per l'acquisto di una partecipazione azionaria precedentemente comunicata con un partenariato di investimento di proprietà indigena. Il ritardo è dovuto a un problema di strutturazione della transazione all'interno del partenariato NGTL. L'accordo riguarda la vendita di una partecipazione azionaria minoritaria negli attivi del sistema NGTL e del gasdotto Foothills. TC Energy rimane impegnata a sviluppare una transazione che fornisca distribuzioni significative alle comunità indigene pur mantenendo il valore fondamentale degli attivi. L'azienda fornirà aggiornamenti materiali man mano che saranno disponibili.
TC Energy (TRP) ha anunciado un retraso en su transacción de compra de interés accionario previamente divulgada con un asociación de inversión de propiedad indígena. El retraso se debe a un problema de estructuración de la transacción dentro de la asociación NGTL. El acuerdo implica la venta de un interés accionario minoritario en los activos del sistema NGTL y del gasoducto Foothills. TC Energy sigue comprometida con el desarrollo de una transacción que otorgue distribuciones significativas a las comunidades indígenas mientras se mantiene el valor fundamental de los activos. La empresa proporcionará actualizaciones materiales a medida que estén disponibles.
TC 에너지 (TRP)는 원주민 소유 투자 파트너십과의 이전에 공지된 주식 지분 구매 거래의 지연을 발표했습니다. 이 지연은 NGTL 파트너십 내의 거래 구조 문제로 인한 것입니다. 이 거래는 NGTL 시스템 및 Foothills 파이프라인 자산의 소수 지분 판매와 관련이 있습니다. TC 에너지는 원주민 공동체에 의미 있는 분배를 제공하면서 자산의 기본 가치를 유지하는 거래 개발에 전념하고 있습니다. 회사는 자료 업데이트가 제공되는 대로 공지할 것입니다.
TC Energy (TRP) a annoncé un retard dans sa transaction d'achat de participation en capital précédemment divulguée avec un partenariat d'investissement indigène. Ce retard est dû à un problème de structuration de la transaction au sein du partenariat NGTL. L'accord implique la vente d'une participation en capital minoritaire dans les actifs du système NGTL et du pipeline Foothills. TC Energy reste engagée à développer une transaction qui offre des distributions significatives aux communautés indigènes tout en maintenant la valeur fondamentale des actifs. L'entreprise fournira des mises à jour matérielles au fur et à mesure qu'elles seront disponibles.
TC Energy (TRP) hat eine Verzögerung bei der zuvor bekannt gegebenen Transaktion zum Kauf von Eigenkapitalanteilen mit einer indigenen Investmentpartnerschaft angekündigt. Die Verzögerung ist auf ein strukturelles Problem bei der Transaktion innerhalb der NGTL-Partnerschaft zurückzuführen. Der Deal betrifft den Verkauf eines minderheitlichen Eigenkapitalanteils an den NGTL-System- und Foothills-Pipeline-Assets. TC Energy bleibt verpflichtet, eine Transaktion zu entwickeln, die signifikante Ausschüttungen an indigene Gemeinschaften bietet und gleichzeitig den grundlegenden Wert der Assets erhalten bleibt. Das Unternehmen wird wesentliche Updates bereitstellen, sobald diese verfügbar sind.
- TC Energy remains committed to completing the equity interest purchase transaction
- The company aims to provide meaningful distributions to Indigenous Communities
- TC Energy is working to maintain the fundamental value of the NGTL System and Foothills Pipeline assets
- Delay in the previously announced equity interest purchase transaction
- Identified transaction structuring issue within the NGTL partnership
Insights
This delay in the equity interest purchase transaction could have short-term implications for TC Energy's financial planning. While the impact isn't quantified, it may affect the company's cash flow projections and balance sheet structure. The "transaction structuring issue" suggests potential legal or regulatory complexities that need resolution, which could incur additional costs.
From an investor's perspective, this delay might be seen as a minor setback in TC Energy's strategy to engage with Indigenous communities and diversify ownership. However, the company's commitment to resolving the issue and delivering "meaningful distributions" indicates a long-term vision for stakeholder engagement, which could enhance its social license to operate and potentially mitigate future regulatory risks.
The "identified transaction structuring issue within the NGTL partnership" raises legal concerns that warrant careful examination. This could involve complexities in partnership agreements, regulatory compliance, or tax implications. The delay suggests that these issues are significant enough to halt the transaction, indicating potential risks in the deal's structure.
TC Energy's focus on developing a transaction that upholds the "fundamental value" of the assets while benefiting Indigenous Communities shows a balanced approach. However, resolving these structural issues may require extensive legal work and possibly renegotiation of terms, which could prolong the process and increase transaction costs.
CALGARY, Alberta, Sept. 10, 2024 (GLOBE NEWSWIRE) -- News Release – TC Energy Corporation (TSX, NYSE: TRP) (TC Energy or the Company) is providing an update on its previously announced equity interest purchase transaction with an Indigenous-owned investment partnership (the Purchaser), which was formed to acquire a minority equity interest in the NGTL System and the Foothills Pipeline assets.
The previously announced equity interest purchase transaction with the Purchaser has been delayed due to an identified transaction structuring issue within the NGTL partnership.
The Company is focused on developing a transaction that delivers meaningful distributions to Indigenous Communities while upholding the fundamental value of the NGTL System and the Foothills Pipeline assets.
The Company acknowledges the effort its many partners have given to this transaction to date and will provide material updates as they become available.
About TC Energy
We’re a team of 7,000+ energy problem solvers working to safely move, generate and store the energy North America relies on. Today, we’re delivering solutions to the world’s toughest energy challenges – from innovating to deliver the natural gas that feeds LNG to global markets, to working to reduce emissions from our assets, to partnering with our neighbours, customers and governments to build the energy system of the future. It’s all part of how we continue to deliver sustainable returns for our investors and create value for communities.
TC Energy’s common shares trade on the Toronto (TSX) and New York (NYSE) stock exchanges under the symbol TRP. To learn more, visit us at TCEnergy.com.
FORWARD-LOOKING INFORMATION
This release contains certain information that is forward-looking and is subject to important risks and uncertainties (such statements are usually accompanied by words such as "anticipate", "expect", "believe", "may", "will", "should", "estimate", "intend" or other similar words). Forward-looking statements in this document are intended to provide TC Energy security holders and potential investors with information regarding TC Energy and its subsidiaries, including management's assessment of TC Energy's and its subsidiaries' future plans and financial outlook. All forward-looking statements reflect TC Energy's beliefs and assumptions based on information available at the time the statements were made and as such are not guarantees of future performance. As actual results could vary significantly from the forward-looking information, you should not put undue reliance on forward-looking information and should not use future-oriented information or financial outlooks for anything other than their intended purpose. We do not update our forward-looking information due to new information or future events, unless we are required to by law. For additional information on the assumptions made, and the risks and uncertainties which could cause actual results to differ from the anticipated results, refer to the most recent Quarterly Report to Shareholders and Annual Report filed under TC Energy’s profile on SEDAR+ at www.sedarplus.ca and with the U.S. Securities and Exchange Commission at www.sec.gov.
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Media Inquiries:
Media Relations
media@tcenergy.com
403-920-7859 or 800-608-7859
Investor & Analyst Inquiries:
Gavin Wylie / Hunter Mau
investor_relations@tcenergy.com
403-920-7911 or 800-361-6522
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FAQ
What caused the delay in TC Energy's (TRP) equity interest purchase transaction?
Which assets are involved in TC Energy's (TRP) equity interest purchase transaction?
Who is the purchaser in TC Energy's (TRP) delayed equity interest transaction?
What is TC Energy (TRP) focusing on regarding the delayed transaction?
