Canada's Keyera buys remaining 50% stake in KAPS pipeline for $861 million (updated)
UPDATE 1-Canada's Keyera buys remaining 50% stake in KAPS pipeline for $861 million Adds details throughout
June 17 (Reuters) - Canada's Keyera Corp KEY.TO said on Wednesday it has acquired the remaining 50% stake in the KAPS natural gas liquids pipeline from Stonepeak for C$1.215 billion ($860.97 million), taking full ownership of the system.
The company expects about C$100 million in incremental growth capital in 2026, above its previously disclosed outlook of C$550 million to C$625 million, to fund its increased share of remaining construction costs for the Zone 4 expansion.
The deal was financed through existing credit facilities, with Keyera planning to raise C$525 million in equity via a bought deal offering, while continuing construction of the KAPS Zone 4 expansion, which is expected to start operations in mid-2027.
($1 = 1.4112 Canadian dollars)
(Reporting by Sumit Saha in Bengaluru; Editing by Leroy Leo)