Minority shareholders will receive 0.88 Tidewater Midstream shares for each share held, a valuation of C$20.58 per share that represents a 3.4% premium over the most recent closing price. The consolidation simplifies the relationship between the parent company and its subsidiary, which have shared management, infrastructure, and logistics since the creation of the renewable fuel unit.

Chief Executive Jeremy Baines noted that the HDRD complex in Prince George, British Columbia, is now operating at nameplate capacity. By folding the subsidiary back into the parent firm, management expects to improve liquidity and financing flexibility while streamlining debt reduction efforts. The company will issue roughly 11.1 million new shares to complete the transaction, with Baines and CFO Ian Quartly retaining their leadership roles in the combined organization.