Tidewater to combine midstream, renewables into 1 company
Tidewater Midstream and Infrastructure Ltd. and Tidewater Renewables Ltd. announced Nov. 2 that they have entered into a definitive arrangement agreement pursuant to which Tidewater Midstream will acquire all of the outstanding common shares of Tidewater Renewables that Tidewater Midstream does not already own.
“Tidewater Renewables was created by Tidewater Midstream to build the [Prince George renewable diesel] complex, and the two companies have operated as one integrated site at Prince George ever since—shared infrastructure, shared feedstock logistics, shared management and a shared customer base,” said Jeremy Baines, Tidewater Midstream’s president and CEO. “Today’s announced combination will complete that evolution—one company, one balance sheet, one strategy, one share. With the [renewable diesel] complex running at nameplate capacity, contracted offtake, strong crack spreads and federal and provincial support in place, the combined company will be in the strongest position in the two companies’ history to reduce debt and advance to the next phase of growth.”
Jeff Hamilton, a member of the renewables special committee, added, “The renewables special committee, advised by its own financial advisor and KPMG Corporate Finance Inc., as independent valuator, conducted a rigorous three-month review before unanimously recommending the transaction. The consideration reflects the relative value of the two companies and is strongly supported by KPMG Corporate Finance Inc.’s independent formal valuation. Renewables shareholders will benefit from greater liquidity, financing flexibility, keep their full exposure to the [renewable diesel] complex and increased upside to growth opportunities of both companies while adding exposure to Tidewater Midstream’s cash flows. The combination is expected to provide immediate benefits to renewables minority shareholders, and removes the cost and complexity of running two public companies and the related-party agreements between them.”
The combined company will operate as Tidewater Midstream and Infrastructure Ltd. and remain listed on the TSX under the symbol “TWM.”
Following closing, Baines will continue as CEO and Ian Quartly as chief financial officer of the combined company.
For more information about the transaction, click here.
