March 17, 2016 / 9:53 PM / 2 years ago

BRIEF-Transcanada to acquire Columbia Pipeline Group for $13 bln

March 17 (Reuters) - Transcanada Corp :

* Transcanada to acquire Columbia Pipeline Group for US$13 billion

* Targeted annual cost, revenue and financing benefits of approximately us$250 million

* Deal supports and may augment eight to 10 per cent expected annual dividend growth through 2020

* Says aggregate transaction value of approximately US$13 billion including assumption of approximately US$2.8 billion of debt

* As an interim measure, Transcanada has bridge term loan credit facilities in place for up to US$10.3 billion

* Columbia is currently advancing US$5.6 billion of commercially secured projects subject to normal course regulatory and permitting processes

* Deal is subject to Columbia shareholder approval and certain regulatory approvals

* Goldman, Sachs & Co. acted as lead financial advisor and Lazard Freres & Co. Llc acted as financial advisor to Columbia

* Says targeted annual cost, revenue and financing benefits from deal of approximately US$250 million

* Deal expected to be accretive to earnings per share in first full year of ownership

* Says under terms of all-cash deal Columbia shareholders will receive US$25.50 per common share

* Upon closing, Columbia will become an indirect wholly-owned subsidiary of Transcanada and will cease to be a publicly held corporation

* Says deal unanimously approved by boards of directors of both companies

* Deal increases 2015 adjusted pro forma EBITDA from regulated and long-term contracted assets to approximately 92 per cent

* Transcanada expects acquisition, to be accretive to earnings per share in first full year of ownership.

* Proceeds from asset sales, along with new common equity proportionate to size of transformative deal, expected to comprise required funding

* Acquisition is expected to close in second half of 2016 subject to receipt of Columbia shareholder approval

* Wells Fargo Securities, Llc acted as exclusive financial advisor to Transcanada. Source text for Eikon: Further company coverage:

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