TORONTO — Some of the most active companies traded Monday on the Toronto Stock Exchange:
Toronto Stock Exchange (19,026.79, up 36.47 points.)
Toronto-Dominion Bank (TSX:TD). Financials. Up $1.01, or 1.22 per cent, to $83.47 on 13.3 million shares.
TC Energy Corp. (TSX:TRP). Energy. Up 14 cents, or 0.24 per cent, to $58.85 on 11.1 million shares.
Suncor Energy Inc. (TSX:SU). Energy. Down 55 cents, or 2.04 per cent, to $26.47 on 7.9 million shares.
Canadian Natural Resources (TSX:CNQ). Down $1.01, or 2.55 per cent, to $38.61 on 7.6 million shares.
Bombardier Inc. (TSX:BBD.B). Industrials. Unchanged at 97 cents on 7.2 million shares.
Royal Bank of Canada (TSX:RY) Financials. Up 50 cents, or 0.43 per cent, to $116.50 on 6.4 million shares.
Companies in the news:
Inter Pipeline Ltd. (TSX:IPL) Down one cent, or 0.06 per cent, to $18.08. An Alberta government grant that more than doubles its previous commitment for a petrochemical plant being built by Inter Pipeline puts pressure on Brookfield Infrastructure Partners LP to raise its hostile takeover bid, an analyst says. On Monday, Inter Pipeline announced it will receive $408 million in cash grants for its Heartland Petrochemical Complex under an incentive program by the current United Conservative Party government but will have to give up $200 million in Alberta royalty credits granted by the previous NDP government. The news is a "significant positive" for Inter, said analyst Ian Gillies of Stifel FirstEnergy in a report. Brookfield is offering $16.50 per share in cash or 0.206 of a Brookfield Infrastructure Corp. class A exchangeable share, with the maximum cash available set at $4.9 billion, for Inter Pipeline. The offer is set to expire on June 7. Inter Pipeline is continuing to fend off Brookfield's bid, which values the Calgary-based company at $7.1 billion, claiming it fails to recognize the worth of the company and the potential earning power of the Heartland project. The $4-billion integrated propane dehydrogenation and polypropylene production facility being built northeast of Edmonton will be the first recipient of the grant program announced in October, Inter Pipeline said in a news release. The same project, designed to transform abundant Alberta propane into plastic beads to be exported to manufacturers, received $200 million in royalty credits in 2016 under the previous NDP government's incentive program.
Whitecap Resources (TSX:WCP) Down 16 cents, or 2.8 per cent, to $5.59. Fast-growing Whitecap Resources says it has struck a $300-million cash-and-shares deal to buy private rival Kicking Horse Oil & Gas Ltd., an indirect subsidiary of Quantum Energy Partners. The Calgary-based company says it will issue 34.5 million Whitecap common shares and pay $56 million in cash, while assuming net debt of about $54 million, in the deal expected to close at the end of May. Kicking Horse currently produces about 8,000 barrels of oil equivalent per day (32 per cent oil and liquids), but Whitecap says it expects to increase and maintain production at about 18,500 boe/d over the next 12 to 15 months by drilling eight to 10 wells per year on the acquired lands. It says it plans to spend $75 million this year to complete four wells and drill six more on the Kicking Horse lands. Whitecap recently raised its 2021 production guidance to about 102,500 boe/d on a capital budget of about $290 million. It says it now expects 2021 production to average about 108,000 boe/d (76 per cent liquids) with a capital budget of about $365 million. Whitecap completed its acquisitions of producers NAL Resources Ltd. and TORC Oil & Gas Ltd. in return for shares in January and February.
Transat AT (TSX:TRZ) Down 80 cents, or 14.6 per cent, at $4.69. Transat shares plunged as much as 22.6 per cent in the first day of trading after Air Canada pulled the plug on its takeover of the Montreal-based tour operator over Europe's unwillingness to approve the deal. Air Canada shares closed up 65 cents or 2.5 per cent at $27.10 on the Toronto Stock Exchange. Canada's largest airline announced on Good Friday that its $190-million purchase of Transat was dead. While Air Canada was expected to make changes to win the required approvals from the European Commission, Walter Spracklin of RBC Dominion Securities said he didn't believe it was in the airline's best interest to put forward an "an uneconomic remedy package that could jeopardize its future ability to compete internationally." He added that the $12.5-million termination fee was immaterial, representing less than one per cent of his estimated $3.8-billion cash burn for Air Canada in 2021. In addition, Air Canada waived its rights to a $10-million fee should Transat complete any other transaction in the next 12 months. Benoit Poirier of Desjardins Capital Markets said Transat will now consider alternatives, including Pierre Karl Peladeau's previous $5-per-share offer and Transat's standalone business plan. "WestJet (owned by Onex) could be another suitable contender given the operations of both companies are complementary," he wrote. WestJet Airlines said it's not interested in purchasing its rival. Poirier expects Transat will act rapidly to position itself for the eventual recovery of the airline industry. It first needs to secure long-term financing.
Aphria Inc. (TSX:APHA) Up four cents, or 0.18 per cent, at $22.79. Two independent proxy advisory firms are recommending Aphria Inc. shareholders vote in favour of the cannabis company merging with Tilray Inc. Institutional Shareholder Services Inc. and Glass Lewis and Co., LLC said Monday that they support the deal announced in December. The deal would see Leamington, Ont.-based Aphria receive 0.8381 shares of Nanaimo, B.C.-based Tilray for each Aphria common share. The deal appears "sound" because it will deliver $100 million in pre-tax cost synergies, ISS said. It was pleased that the merger will create the world's largest cannabis business based on pro forma revenues and still leave the combined company with room to grow in Canada, the U.S. and Europe. Meanwhile, Glass Lewis conducted an independent review of the transaction and believes the deal was structured fairly and reasonably and is favourable to Aphria shareholders. Aphria will host a special meeting for shareholders about the transaction next Wednesday, following a Monday proxy voting deadline.
Great Canadian Gaming Corp. (TSX:GC) Up 49 cents, or 1.13 per cent, to $43.96. Great Canadian Gaming's proposed acquisition by a fund affiliated with Apollo Global Management Inc. moved a step closer to completion following approval by Investment Canada. The U.S. buyer received approval under the Investment Canada Act for the investment fund's $45-per-share takeover offer. That follows approvals in December from the Supreme Court of British Columbia and security holders, as well as clearance under the Competition Act. Certain other closing conditions remain, with the transaction expected to close in the second quarter of 2021. Just three of the company's 26 casinos remain open after Ontario operations at the Elements Casino Grand River and Shorelines Casino Belleville were suspended as of April 2 following government mandates to address the spread of COVID-19. Two casinos in Nova Scotia and one in New Brunswick remain open with restrictions. About 79 per cent of shareholders voted in favour of the deal on Dec. 23 after the investment fund sweetened its earlier offer by more than 15 per cent.
This report by The Canadian Press was first published April 5, 2021.
The Canadian Press