RE:Value of the SOBO shares at time of spin offThe $30.05 per share for the fractional shares was arrived at by an agent for TRP aggregating all of the fractional shares and selling them on the open market. The proceeds were then paid out to the fractional share holders. So the $30.05 is just a sale price of the fractional share. I wonder if the CRA will be monitoring the payment of capital gains on the $6.01 received for the 0.2 shares.
This is explained on Line 14 of the TRP US Tax submission which is available on the spin off page.
The relevant section
"As a result of the Arrangement, holders of TC Energy Common Shares received 0.2 South Bow Common Shares in respect of each TC Energy Common Share; provided, however, that fractional South Bow Common Shares were not issued to holders of TC Energy Common Shares. In lieu of issuing such fractional shares, an agent aggregated all fractional shares into whole shares, sold for cash the whole shares in the open market, and distributed to each applicable shareholder of South Bow Common Shares, in lieu of any fractional share to which it otherwise may be entitled, such shareholder’s ratable share of the total cash proceeds from the open market sale."