South Bow spinoff remains on track

Article Excerpt

Pipeline giant TC Energy has set the terms for the upcoming spinoff of its oil pipeline business (called South Bow Corp.): investors will receive 0.2 of a South Bow share for every TC share they hold. The new shares will trade on the Toronto and New York exchanges under the “SOBO” symbol. Assuming shareholders approve, the company expects to complete the transaction in the second half of 2024. After the spinoff, TC will concentrate on its gas pipelines and electrical power operations. Like most spinoffs, we feel the separation will help unlock value as both companies can better focus on their main businesses. Income-seeking investors will also benefit as the two new firms plans to keep increasing their dividends. TC ENERGY CORP. $53 is your #1 Spinoff Buy for 2024. The company (Toronto symbol TRP; Utilities sector; Shares outstanding: 1.04 billion; Market cap: $55.1 billion; Dividend yield: 7.2%; Takeover Target Rating: Medium; www.tcenergy.com) operates a 93,600-kilometre pipeline network that pumps natural gas from Alberta to eastern Canada…