CALGARY — Canadian Pacific Railway Ltd. says its shareholders will vote next month on the issuance of shares in connection with its proposed acquisition of Kansas City Southern.
The Calgary-based railway says all shareholders as of Monday will be eligible to vote Dec. 8 during a virtual special meeting.
CP Rail has agreed to purchase the U.S. railway for about US$31 billion, including the assumption of US$3.8 billion of debt.
The U.S. railway regulator approved the use of a voting trust for the transaction that allows KCS shareholders to receive payment after shareholders of both company approve the deal and before it receives final approval.
KCS shareholders will receive 2.884 CP shares and US$90 in cash for each KCS common share held, and KCS’s voting shares will be placed into trust. The trust is expected to close in the first quarter.
CP reached agreement with Kansas City Southern after Canadian National Railway Co. said it was dropping its rival takeover bid after the Surface Transportation Board rejected its request for a voting trust.
The merger, which will create the first Canada-U.S.-Mexico rail network, also needs to be approved by Mexican regulators.
This report by The Canadian Press was first published Nov. 3, 2021.
Companies in this story: (TSX:CP, TSX:CNR)
The Canadian Press