Q: Hi, I’m interested in hearing your thoughts on TFI Re-Domiciling to the US. How does this benefit the company? As a shareholder in the company will this impact my investment? Will a withholding tax now apply? Will they continue to be listed on the TSX after this move? Is this decision possibly related to tariff threats? Can you see other Canadian companies with significant US business following this route?
5i Research Answer:
TFII discussed the transition to the US, calling it an 'evolution' simply as most of its business and sharegholders are now US. It expects the breakdown to move to 80/20 US/Canada in the next few years. Reasons other than this were not really discussed. Some shareholders are not happy but we would not see it as a big deal. We do not know any tax implications at this time and the move needs shareholder approval. A circular will be prepared. TFII said employees would not be moving but did say the TSX listing would be maintained. It was not specifcially tied to tariffs. It is possible other companies will follow. BAM has already announced plans.