How to handle the TC Energy (TRP.TSE) spinoff of South Bow (SOBO.TSE)
Content also available for tax entities or on our global site.Summary
On Oct. 1, 2024, TC Energy completed the spinoff of its Liquids Pipelines business, South Bow. The spinoff was in line with TC Energy’s long-term strategy to focus on complementary business lines – natural gas, natural gas storage and power and energy solutions.
- Record date: 25 September 2024
- Spinoff details: 1 new TC Energy Common Share and 0.2 of a South Bow Common Share for each TC Energy share held
How to handle this in Sharesight
Update cost base
1 – On the overview page, select TRP.TSE__
2 - Select Trades & Income tab
3 - Select Add trade or adjustment
4 - Trade date: 25 September 2024
5 - Trade type: Adjust cost base
6 - Demerger calculator: This holding: 91 : The new holding: 9
7 - Select Save trade
8 - Take note of the adjust cost base amount
Add South Bow
1 - On the overview page, select Add Investment > Individually add trade
2 - Search SOBO.TSE
3 - Trade date: 25 September 2024
4 - Trade type: Opening balance
5 - Total Cost Base CA$: Enter adjusted cost base amount from TRP.TSE
6 - Quantity: 0.2 x total TRP.TSE shares
7 - Select Save trade
FAQ
What is the South Bow spinoff?
On July 27, 2023, the Board of Directors approved a plan to separate TC Energy into two independent, investment-grade, publicly listed companies: TC Energy Corporation and South Bow Corporation. On Oct. 1, 2024, South Bow legally separated from TC Energy, marking a monumental moment in our shared history.
Why did TC Energy spin off its liquids business?
Increase focus on complementary business lines – natural gas, natural gas storage and power and energy solutions, in line with TC Energy’s long-term strategy.
What is the cost base allocation ratio?
According to the official announcement, for Canadian income tax purposes, the cost base allocation is 91% to TC Energy (TRP.TSE) and 9% to South Bow (SOBO.TSE) common share.
Do I need to take any action?
You do not need to take any action. Your broker should automatically allocate the new TC Energy and South Bow common shares to your account.
What do I receive for my shares?
You will receive 1 new TC Energy and 0.2 South Bow common shares for every TC Energy share held.
Where can I find the official announcement and details?
You can find more details here and here.
The guide above is a suggestion on how to handle the corporate action in Sharesight and is not finance or tax advice. We advise you to consult your financial advisor or accountant. We also encourage you to review the official Documents for full details.
Last modified on October 18, 2024 UTC