Kinder Morgan Canada now expects a takeover of its Trans Mountain crude oil pipeline to close in late 2018, with the Government of Canada funding construction of the expansion project through closing, the company said in a proxy filed on Tuesday.
Kinder Morgan Canada shareholders will vote on the Canadian government's proposed C$4.5 billion ($3.45 billion) takeover on Aug. 30, the company said in a July 27, 2018 letter to shareholders posted in the proxy. The Trans Mountain pipeline extends from Edmonton, Alberta to a port in the Vancouver area.
Canada, which agreed to buy the controversial pipeline and project in late May, will fund the resumption of consumption of the expansion under a covered credit facility until the deal closes, the company said.
(Reporting by Julie Gordon in Vancouver; Editing by Bernadette Baum)