Enbridge sells oil, wind assets to affiliate for $1.16 billion

Shareholders will vote on the transaction in early December.

October 26, 2012   by The Canadian Press

CALGARY—Pipeline giant Enbridge Inc. is transferring $1.16 billion in storage and renewable energy assets to its affiliate.

Enbridge Income Fund Holdings is acquiring oil storage facilities in Hardisty, Alta., that can hold about 11 million barrels of crude above and below ground.

The fund is also buying The Greenwich Wind Project near Thunder Bay, Ont., and the Amherstburg and Tilbury solar projects near Sarnia, Ont.

As a result of the deal, Enbridge Inc.’s economic interest in Enbridge Income Fund Holdings will decrease from 69.2% to 67.8%.

Related to the acquisition, Enbridge Income Fund Holdings plans to raise $222.2 million through a bought-deal financing led by RBC Capital Markets and CIBC World Markets, which will see it sell nearly 9.6 million subscription receipts at a price of $23.15.

Those proceeds will be paid to Enbridge Inc. in cash, in addition to $582 million in debt, $305 million in additional Enbridge Commercial Trust units and $55 million in common shares.

Shareholders are set to vote on the transaction on December 7.

©The Canadian Press

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