Enbridge Inc. acquires Enbridge Income Fund Holding Inc. for US$3,215M

CANADA - Enbridge Inc. planned to acquire the remaining stake, which it did not already own, in Enbridge Income Fund Holdings Inc (ENF), a Calgary-based provider of pipeline transportation services of crude oil, in a stock swap transaction valued at a total CAD 4.111 bil (USD 3.215 bil), via an unsolicited offer. Enbridge offered 0.7029 common shares per ENF common share. Based on Enbridge's closing stock price of CAD 41.8 (USD 32.697) on 16 May 2018, the last full trading day prior to the announcement, each ENF share was valued at CAD 29.381 (USD 22.983). Concurrently, Enbridge planned to acquire the remaining stake, which it did not already own in Spectra Energy Partners LP, Enbridge Energy Partners LP and Enbridge Energy Management LLC.

The purposes of the transaction were for Enbridge Inc. to create value for shareholders, strengthen its operations and to simplify and streamline its corporate structure.

Date Announced: 05/17/2018 
Deal Status (as of publication date): Pending
Deal Value (mil): $3,215.36

ACQUIRER ADVISORS*
Bank of America Merrill Lynch (Financial Advisor)
Scotiabank (Financial Advisor)

McCarthy Tétrault LLP (Legal Advisor)
Sullivan & Cromwell LLP (Legal Advisor)
Vinson & Elkins LLP (Legal Advisor)

TARGET ADVISORS
Undisclosed

Enbridge Inc., located in Calgary, Alberta, owns and operates crude oil and natural gas pipelines. It conducts its business through five operating segments: Liquids Pipelines, Gas Pipelines, Gas Distribution and Services, Sponsored Investments, and International. It is also engaged in renewable energy. It has operations in Ontario, Quebec, New Brunswick and New York State. The Company was founded on April 1949. 

Enbridge Income Fund Holdings Inc, located in Calgary, Alberta, through its investment in Enbridge Income Fund, holds energy infrastructure assets in Canada. Its assets include crude oil gathering pipelines in Saskatchewan and Manitoba and crude oil storage terminals and caverns in Hardisty, Alberta, as well as interests in 524 megawatts of renewable and alternative power generation capacity in Alberta, Saskatchewan and Ontario. It holds a 50% interest in the Canadian segment of the Alliance Pipeline that transports high-energy, rich natural gas from northeastern British Columbia and northwestern Alberta to delivery points near Chicago, Illinois. The Company was founded in March 2010.

*List of advisors are those known at press time.