TransCanada sells pipeline system to TC PipeLines
By
Associated Press
May 20, 2009
|
TransCanada Corp. on Wednesday said it will sell its subsidiary North Baja Pipeline LLC to TC PipeLines LP for $395 million in cash and stock.
The Calgary, Alberta-based company will receive about $200 million in cash and 6.3 million common units of TC PipeLines, bumping TransCanada's ownership of the partnership to 42.6 percent.
Proceeds from the sale will go toward financing TransCanada's $19 billion capital program, said Hal Kvisle, the company's chief executive.
The North Baja Pipeline System is an 80-mile natural gas pipeline that extends from Southwestern Arizona to the California/Mexico border where it connects with a natural gas pipeline system in Mexico. North Baja consists of 30 and 36-inch diameter pipeline with a capacity of 600 million cubic feet per day.
Shares of TransCanada climbed $1.05, or 3.9 percent, to $28.09 in afternoon trading. TC Pipelines' shares rose $1.39, or 4.6 percent, to $31.94.
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