CP shareholders overwhelmingly support CP-KCS merger 

CP shareholders overwhelmingly support CP-KCS merger 
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CALGARY – Canadian Pacific Railway Limited (TSX: CP) (NYSE: CP) today announced that its shareholders voted overwhelmingly in favour of the issuance of CP common shares to Kansas City Southern common stockholders in connection with the proposed CP-KCS combination.

“The shareholder approvals today are a key step on our path to this once-in-a-lifetime partnership to create the first U.S.-MexicoCanada rail network,” said Keith Creel, CP President and Chief Executive Officer. “This is a transformative opportunity for CP, for KCS, and for the North American economy.”

CP shareholders voted on two items of business at Wednesday’s special meeting of shareholders. The first was an ordinary resolution to approve the issuance of up to 277,960,197 CP common shares as the share consideration under the terms of the merger agreement. The second was a special resolution to approve an amendment to CP’s articles of incorporation to change its name to Canadian Pacific Kansas City Limited, a change contingent upon the approval by the U.S. Surface Transportation Board of the proposed CP-KCS combination.

The results of the vote are as follows:

% Votes For

% Votes Against

Share Issuance Resolution 

99.91%

0.09%

Name Change Resolution

99.83%

0.17%

 

“The overwhelming support our shareholders have given today to the transaction is critical to making this combination a reality,” Creel added. “In the coming days, we will be working to complete the steps required to close into the voting trust, and in the months ahead we look forward to participating in the STB’s comprehensive regulatory review. Following receipt of STB approval and consummation of CP control, Canadian Pacific Kansas City will add new capacity to the U.S. rail network, create new competitive transportation options, support North American economic growth, and deliver other important benefits to customers, employees, and the environment.”

As previously announced on Sept. 15, 2021, CP has agreed to acquire KCS in a stock and cash transaction representing an enterprise value of approximately $31 billion, which includes the assumption of $3.8 billion of outstanding KCS debt. The transaction, which has the unanimous support of both boards of directors, values KCS at $300 per share, representing a 34% premium, based on the CP closing price on Aug. 9, 2021, the date prior to which CP submitted a revised offer to acquire KCS, and KCS’s unaffected closing price on March 19, 2021.

Canadian Pacific (TSX: CP) (NYSE: CP) is a transcontinental railway in Canada and the United States with direct links to major ports on the west and east coasts. CP provides North American customers a competitive rail service with access to key markets in every corner of the globe. CP is growing with its customers, offering a suite of freight transportation services, logistics solutions and supply chain expertise.

Headquartered in Kansas City, Mo., Kansas City Southern (KCS) (NYSE: KSU) is a transportation holding company that has railroad investments in the U.S., Mexico and Panama. Its primary U.S. holding is The Kansas City Southern Railway Company, serving the central and south central U.S. Its international holdings include Kansas City Southern de Mexico, S.A. de C.V., serving northeastern and central Mexico and the port cities of Lázaro Cárdenas, Tampico and Veracruz, and a 50 percent interest in Panama Canal Railway Company, providing ocean-to-ocean freight and passenger service along the Panama Canal. KCS’ North American rail holdings and strategic alliances with other North American rail partners are primary components of a unique railway system, linking the commercial and industrial centers of the U.S., Mexico and Canada.

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