Kinder Morgan Canada Limited (TSX: KML) today announced that the Trans Mountain Pipeline system and the Trans Mountain Expansion Project (TMEP) have been indirectly acquired by the Government of Canada, through Trans Mountain Corporation (a subsidiary of the Canada Development Investment Corporation) for cash consideration of $4.5 billion.
The sale price is subject to customary purchase price adjustments as provided in the purchase agreement.
The KML board plans to complete its ongoing deliberations regarding the use of the after-tax net proceeds of the transaction and announce a final determination after market close on September 4, 2018.
In connection with the closing, KML also replaced its existing $500 million secured revolving credit facility with a new four-year, $500 million unsecured revolving credit facility for working capital purposes.
This announcement comes one day after the Canadian Court of Appeal announced their decision that halted the construction of the pipeline. Later, Finance Minister Bill Morneau said that they intend to follow through with today’s sale and carefully consider their options.
Alberta’s premier Rachel Notley has announced that their province will withdraw from Canada’s climate plan until construction of the pipeline resumes, and insists that the government call an emergency session and “fix this,” instantly.
“With Trans Mountain halted until the federal government gets its act together, Alberta is pulling out of the federal climate plan,” stated Notley unequivocally in her speech. “And let’s be clear – without Alberta, that plan isn’t worth the paper it’s written on.”
(You can also read the full transcript on CBC)
In a statement issued yesterday, British Columbia’s premier John Horgan said he was pleased with the courts decision.
“The court has found that consultation with First Nations was inadequate, and that the process failed to consider the risks of marine tanker traffic,” said Horgan yesterday. “These are very serious issues for the federal government to address.”
- Kinder Morgan and the Canadian Government close the deal: Canada now officially owns the pipeline
- Premier’s statement on Federal Court of Appeal decision
- Federal government commits to the acquisition of Kinder Morgan’s pipeline in spite of today’s court ruling
- Canadian Taxpayers Federation reacts to Federal Court of Appeal decision on Trans Mountain pipeline expansion approval
- Tsleil-Waututh Nation applauds FCA decision quashing Kinder Morgan pipeline approvals
- Appeal court overturns Trans Mountain approval, making project’s future uncertain
- Federal court of appeal halts Trans Mountain pipeline project
- Elizabeth May sponsors a petition to halt the Trans Mountain expansion
- Premier holds course on pursuing provincial rights through courts
- Federal government to buy Trans Mountain Pipeline in August
- The Federal government’s plan to bail out Kinder Morgan ignores major legal risks
- Slim majority of Canadians, British Columbians now support pipeline project; opposition remains strong
- Opinion: Nationalizing the Trans Mountain pipeline is a terrible idea
- Point/CounterPoint: Two views on the Kinder Morgan Trans Mountain expansion project
- Political statements on Kinder Morgan’s decision on the Trans Mountain expansion project
- Green Party leader Elizabeth May arrested at Kinder Morgan protest
- New data mark years of failure to reduce carbon pollution
- B.C. government granted intervener status
- Opposition Leader Rich Coleman’s statement on Trans Mountain Pipeline
- Greens support action to stop Trans Mountain Pipeline Expansion
- Government takes action to protect B.C. over Kinder Morgan pipeline and tanker traffic expansion
- Point and counterpoint: Two views on Kinder Morgan Trans Mountain Expansion
- Protect Our Coast solstice rally, demonstration planned for Sooke Dec 21
- Horgan, Clark post official responses to Fed’s pipeline decisions
- Canada’s pipeline plan
- Mayor of Sooke stands with other mayors requesting more pipeline consultation
- Ten days left to comment on Kinder Morgan Pipeline
- September 12 Council Meeting Takeaways
- Province reaffirms Trans Mountain pipeline must meet five conditions
- OPINION: Three of four candidates appeared at the Sooke Climate Change Debate