Calgary, Canada-based TransCanada Corp. (NYSE: TRP) closed on its $13 billion acquisition of Houston-based Columbia Pipeline Group Inc. (NYSE: CPGX) on June 30, and the merger will become effective on July 1, as expected.
Columbia shares will be suspended from trading on the New York Stock Exchange effective as of the opening of trading on July 1. As of 12:01 a.m. Eastern Time July 1, the company’s common stock will be converted into the right to receive $25.50 per share in cash, without interest.
Columbia will no longer be eligible for HBJ’s Largest 100 Public Companies List, which just published June 24 with the company ranked at No. 73 with 2015 revenue of $1.33 billion. Columbia’s CEO, Robert Skaggs, ranked No. 21 on HBJ’s List of the Highest-Paid CEOs of Public Companies. Skaggs took home total compensation of $8.7 million in 2015, according to data from Equilar.
The deal, which includes TransCanada assuming Columbia’s $2.8 billion of debt,was announced in March. Shareholders approved the deal at a special meeting on June 22. The deal represents an 11 percent premium based on Columbia’s closing stock price of $23 as of March 16.
When the deal closes, Columbia will become an indirect, wholly owned subsidiary of TransCanada. Columbia Pipeline Group only began trading last summer, when it spun off from Indiana-based NiSource Inc. Columbia Pipeline Group companies own and operate more than 15,000 miles of natural gas pipelines.
Russ Girling, TransCanada’s president and CEO, said in a June 22 statement that the companies’ “combined $25 billion in near-term growth opportunities supports, and may augment, an expected 8 to 10 percent annual dividend growth rate for our shareholders through 2020.”
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