05:10 PM EDT, 06/04/2024 (MT Newswires) -- TC Energy ( TRP ) on Tuesday said shareholders approved the spin out of the company's liquids pipeline business, as the company moves to concentrate on its natural-gas pipelines and power assets.

The company said with the approval it is proceeding with the spin out of the new company, to be called South Bow Corp. Shareholders will receive 0.2 of a South Bow share for each TC share held.

"Today, our shareholders have affirmed their support of our Board and management team's vision for the futures of TC Energy ( TRP ) and South Bow. This is an important milestone as we continue to move forward with our plan to separate into two highly focused, premier energy infrastructure companies. Through this separation, both companies will continue to deliver shareholder value in the form of compelling dividends, while focusing on meeting the growing demand for all forms of secure, affordable and sustainable energy," chief executive Francois Poirier said in a release.

The split is expected to be completed late in the third quarter or mid-fourth quarter. It remains subject to receipt of necessary regulatory and court approvals and other conditions.

TC shares closed up $0.48 to $52.79 on the Toronto Stock Exchange.