Tokai Carbon Co. Ltd. (TSE:5301) agreed to acquire Cancarb Limited and heat processing equipments from TransCanada PipeLines Limited and TransCanada Energy Ltd. for CAD 190 million on January 20, 2014. Tokai Carbon will acquire 12 shares of Cancarb Limited from TransCanada PipeLines Limited and heat processing equipments from TransCanada Energy Ltd. For the year ended December 2012, Cancarb reported net assets of CAD 31.88 million, total assets of CAD 38.79 million, sales of CAD 59.7 million, operating profit of CAD 22.19 million, net income of CAD 16.3 million and EPS of CAD 1.36 million.

The transaction is subject to various approvals including regulatory approvals. The transaction has been approved by the Board of Directors of Tokai. The transaction is expected to close in March 2014.

The proceeds from the sale will help fund TransCanada's unprecedented capital growth plan that includes investment in new projects to be completed by the end of the decade. TransCanada expects to realize a gain of approximately CAD 95 million net of tax in its second quarter 2014 results. J.P. Morgan Securities LLC acted as financial advisor on the transaction.

Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. acted as the exclusive financial advisor to Tokai Carbon. J.P. Morgan Securities LLC acted as financial advisor to TransCanada Corp., parent of TransCanada PipeLines Limited and TransCanada Energy.