Enbridge Income Fund Holdings Inc. will assume about $11.7 billion of debt as part of the transaction.
June 19, 2015
by The Canadian Press
CALGARY — Enbridge Inc. has agreed to transfer ownership of its Canadian liquids pipeline business to the affiliated Enbridge Income Fund in a transaction valued at $30.4 billion.
Enbridge Income Fund Holdings Inc. will assume about $11.7 billion of debt as part of the transaction, which Enbridge Inc. has said will give it more financial flexibility to pursue its pipeline growth projects.
The main company will also receive about $18.7 billion of equity from the publicly traded income fund and one of its subsidiaries, giving Enbridge Inc. a 90% interest in ENF upon closing.
Enbridge Inc.’s equity in the fund is expected to be reduced to 80% by 2018 as ENF issues equity to outside investors in stages, contemplated to be between $600 million and $800 million a year.
Enbridge had previously announced in December that it was considering this transaction, which requires approvals from ENF shareholders, the Competition Bureau, Toronto Stock Exhange and Transport Canada.
It expects the transaction to close in August.
© 2015 The Canadian Press