TC Energy deal to sell pipeline stake to Indigenous groups a ‘win-win-win’: strategist – BNN Bloomberg
July 31, 2024
An equity strategist says TC Energy’s sale of a minority stake in its natural gas pipeline network in Western Canada to a consortium of Indigenous communities is a positive step forward for all parties involved.
“I think it’s a really good deal… I think it’s a win-win-win and I think it makes a lot of sense,” said Morningstar Research Services’ Stephen Ellis in an interview with BNN Bloomberg on Wednesday.
“There’s a couple things for TC Energy; one, it raises a billion dollars towards their debt reduction targets, and two… it ensures a really strong partnership between TC Energy and stakeholders alongside the pipeline routes.”
The deal is worth $1 billion, with a total enterprise value inclusive of debt of $1.65 billion, the largest Indigenous equity ownership agreement in Canadian history, according to TC Energy.
