Feb 19 (Reuters) - TC PipeLines LP's largest independent
unitholder, Energy Income Partners, said on Friday it plans to
vote against the $1.68 billion merger with Keystone pipeline
owner TC Energy, saying the deal undervalues the
Energy Income Partners has more than 10% stake, which makes
it the largest 'non-affiliated' unitholder. It said the deal is
"inadequate" and "significantly undervalues" TCP's organic
Calgary-based TC Energy owns about 24% stake in TC PipeLines
through the Master Limited Partnership's (MLP) general partner.
The company had said in December it would acquire the rest by
offering 0.70 shares for each unit of TC PipeLines.
An MLP, like TC PipeLines, is a corporate structure popular
among pipeline companies as they offer tax advantages.
Unlike other companies that are owned directly by
shareholders, MLPs are owned and governed by general partners.
For TC PipeLines, its general partner is a unit of TC Energy.
The deal, which is expected to close late in the current
quarter, will require approval by unitholders at a special
meeting set by TC PipeLines for Feb. 26.
Earlier on Friday, TC PipeLines had said independent proxy
advisory firms Institutional Shareholder Services and Glass
Lewis & Co have recommended unitholders to vote in favor of the
(Reporting by Rithika Krishna in Bengaluru; Editing by Arun