Shareholder information
South Bow’s separation from TC Energy was completed on October 1, 2024. For historical information related to the South Bow spinoff, please visit TC Energy | South Bow Spinoff.
Tax information
The transaction is generally expected to be tax-free to TC Energy’s – and now South Bow’s – Canadian and U.S. shareholders as well as the company and its affiliates.As part of the Arrangement, the estimated proportionate allocation of adjusted cost base between TC Energy common shares and South Bow common shares was determined to be 91% to TC Energy common shares and 9% to South Bow common shares. For more information, please see: Tax Matters – October 2024 Spin-off of Liquids Pipeline Business. Each shareholder may have a different or unique tax profile and we encourage you to seek tax advice for your particular situation.
Dividends
The initial combined dividends of TC Energy and South Bow will be equivalent to TC Energy’s annual dividend immediately prior to the completion of the spinoff, with the expected dividend split being 14% for South Bow and 86% for TC Energy. Future dividends will be at the discretion of each company’s board of directors.
Treatment of South Bow Shares
TC Energy shareholders have received 0.2 of a South Bow common share and one new TC Energy common share for each common share of TC Energy held as of the distribution record date of September 25, 2024.