Q: Can you explain the details of the TRP spinoff that is planned for the second half of 2024 please? I invested in TRP for the dividend income. What do you recommend I do after the spinoff is completed knowing dividend income is the highest priority when investing in this company?
5i Research Answer:
TRP plans to spin off its liquids division, TC Energy Liquid Corp., South Bow. Under the proposed spinoff, TC Energy shareholders will retain their current ownership in TC Energy's common shares and receive a pro-rata allocation of common shares in the new Liquids Pipelines Company, South Bow. The spin off will be tax free to Canadians. Full details are still not available, but we believe it is the right move for the company. Dividends (total) will stay the same and should continue to grow at both companies. We would, for now, suggest keeping both, unless and until new information becomes available. There is still plenty of time here before the split closes.