Canadian energy company TC Energy has made an offer to acquire the remaining stake that it does not already own in TC PipeLines for about $1.48bn.

Under the non-binding offer, TC Energy intends to acquire the common units of TC PipeLines that are not beneficially owned by the company or its affiliates in exchange for its common shares.

As per the terms of the deal, TC PipeLines common shareholders will receive 0.650 common shares of the energy company for each issued and outstanding publicly-held common unit of it.

TC Energy said: “This reflects a 7.5 per cent premium to the exchange ratio implied by the 20-day volume weighted average prices of TCP’s common units and TC Energy’s common shares on the NYSE as of October 2, 2020.”

TC PipeLines is a Delaware master limited partnership

With stakes in eight federally regulated US interstate natural gas pipelines, TC PipeLines is a Delaware master limited partnership.

The gas pipelines serve markets in the western, midwestern and northeastern parts of the country.

The master limited partnership is managed by its general partner, TC PipeLines GP, a subsidiary of TC Energy.

TC PipeLines stated: “Any definitive agreement is expected to contain customary closing conditions.

“There can be no assurance that any such approvals will be forthcoming, that a definitive agreement will be executed or that any transaction will be consummated.”

Recently, TC Energy and Natural Law Energy (NLE) have executed a memorandum of understanding (MOU) to enable the latter to acquire a stake in its $8bn Keystone XL project and other related midstream and power projects in the future.