TRP sells a marginal business

Article Excerpt

TRANSCANADA CORP. $47.82 (Toronto symbol TRP; Shares outstanding: 707.0 million; Market cap: $33.7 billion; TSINetwork Rating: Above Average; Dividend yield: 3.9%; www.transcanada.com) has agreed to sell its Cancarb business to Japan’s Tokai Carbon Co. Alberta-based Cancarb makes thermal carbon black from natural gas. It sells this product to carmakers and other industrial users, who use it as an ingredient in high-grade rubber and ceramics. Cancarb also uses waste heat from its manufacturing operations to generate electricity, which its sells to the local power grid.xzc Tokai will pay TransCanada $190 million when the deal closes in the next few weeks. That’s equal to 43% of the $447 million it earned in the quarter ended September 30, 2013. TransCanada is a buy. buy…