(Bloomberg) -- Kinder Morgan Canada Ltd. is planning to return about C$1.2 billion ($910 million) to shareholders from its sale of the contentious Trans Mountain oil pipeline to the Canadian government.
The board also voted to approve a plan for a “reverse stock split” of the restricted voting shares and special voting shares on a one-for-three basis, the unit of Houston-based Kinder Morgan Inc (NYSE:KMI). said in a statement Tuesday.
The Trans Mountain extension project, which Prime Minister Justin Trudeau’s government bought for C$4.5 billion, suffered a major setback last week after a Canadian court nullified its approval. The line, which takes crude from the oil sands to the country’s Pacific Coast, faces strong opposition in British Columbia, the province it crosses to reach the shore.
The payment to holders of restricted voting shares will take place Jan. 3, with the reverse stock split to follow, if the plan is approved. The proposals will be voted on at a special shareholder meeting during the fourth quarter of this year.
Here are other key takeaways from the statement:
- Kinder Canada expects to maintain a dividend of C$0.1625 per restricted share in the third quarter and expects to pay the dividend before the reverse split.
- For the fourth quarter, the first entirely without Trans Mountain, Kinder Canada expects its remaining assets in the pipelines and terminals segments to generate adjusted earnings before certain items, or Ebitda, of just over C$50 million.
- The company expects to finish the year with little or no debt.
- John Schlosser was named president, and he continues to serve as president of Terminals for Kinder Morgan Inc.
- Kinder Morgan said it plans to vote in favor of Kinder Canada’s board proposals.