Summary
Kinder Morgan, Inc. (KMI) has announced the outcome of a strategic review concerning its 70%-owned subsidiary, Kinder Morgan Canada Limited (KML). The board of directors at KML, after considering recommendations from a special committee of independent directors, has determined that KML will remain a stand-alone public entity. This decision implies that KMI will not be acquiring the remaining interest in KML or pursuing a full divestiture at this time, maintaining the current ownership structure. Investors should note that this announcement concludes a period of uncertainty regarding KML's future structure. While KMI will continue to hold its majority stake, the strategic direction and operational independence of KML will be maintained. Further details were expected to be discussed during a webcast and conference call on May 10, 2019.
Key Highlights
- 1Kinder Morgan Canada Limited (KML), a 70% owned subsidiary of KMI, will remain a stand-alone public entity.
- 2KML's board of directors concluded a strategic review, determining the current structure is the best course of action.
- 3The decision was made in conjunction with the recommendation of a special committee of independent directors unaffiliated with KMI.
- 4This announcement resolves uncertainty regarding potential acquisitions or divestitures of KMI's stake in KML.
- 5KMI retains its 70% ownership interest in KML.
- 6Further discussion on the announcement was scheduled via webcast and conference call on May 10, 2019.