- Kansas City Southern shareholders showed a glowing green light Friday.
- The green light to the railway’s seizure by Canadian Pacific Railway Ltd.
CP Rail took over on Kanas City shareholders:
Shareholders voted 96.6 per cent in turn at a particular session that lasted less than 10 minutes, paving the way for the design of the only single-line rail network linking Canada, the United States and Mexico.
The authorisation pursues a thumbs-up from Mexican controllers the previous month and CP shareholders on Wednesday.
CP decided in September to buy KCS in a contract valued at US$31 billion, including the belief of US$3.8 billion of debt, following a grumpy fight with Canadian National Railway Co., which was also peeking to achieve the U.S. railroad.
“With strong shareholder support, we are excited to complete the steps required to close the CP-KCS transaction into the voting trust, a critical milestone in the journey to make Canadian Pacific Kansas City a reality,” CP chief director Keith Creel stated in a release.
The U.S. Surface Transportation Board has authorised the usage of a voting trust for the transaction that permits KCS shareholders to accept payment after shareholders of both firms to agree on the agreement, but ere the agreement obtains last approval.
KCS ordinary stockholders will obtain 2.884 CP common shares and US$901 in cash per share of KCS common stock held, with best stockholders accepting US$37.50 in cash per share of selected stock had.
CP stated the prices will go ahead when the trade completes into trust, anticipated on Dec. 14.
The U.S. regulatory review is anticipated to wrap up in the fourth quarter of 2022, CP stated.