CALGARY, AB, June 7, 2021 /PRNewswire/ - Enbridge Inc.
(Enbridge or the Company) (TSX: ENB) (NYSE: ENB) announced today
that a subsidiary of Enbridge has entered into a definitive
agreement to sell its 38.9% non-operating minority ownership
interest in Noverco Inc. (Noverco) to Trencap L.P. for $1.14 billion in cash, net of Noverco
non-recourse debt assumed by Trencap L.P. This represents a
valuation of approximately 29x reported 2020 GAAP earnings of
$39 million.
Closing of the transaction is expected to occur by early 2022
and is subject to the receipt of regulatory approvals and customary
closing conditions. Sale proceeds will initially be used to repay
short term debt, and on this conservative basis the transaction is
expected to be neutral to distributable cash flow per share.
Noverco is currently owned 38.9% by Enbridge and 61.1% by
Trencap L.P., a consortium lead by Caisse de dépôt et placement du
Québec (CDPQ). Noverco indirectly owns Énergir, L.P. which is a
Quebec-based business with
interests primarily in gas distribution and power distribution in
Quebec and Vermont.
"We're pleased to opportunistically monetize this non-strategic
financial investment in Noverco at an attractive valuation and
surface this value for our shareholders." said Colin Gruending, Enbridge's Chief Financial
Officer. "This transaction further enhances our already
sector-leading financial strength and flexibility and demonstrates
our disciplined approach to capital allocation," he added.
RBC Capital Markets is acting as financial advisor to Enbridge
on the transaction.
About Enbridge Inc.
Enbridge Inc. is a
leading North American energy infrastructure company. We safely and
reliably deliver the energy people need and want to fuel quality of
life. Our core businesses include Liquids Pipelines, which
transports approximately 25 percent of the crude oil produced
in North America; Gas Transmission and Midstream, which
transports approximately 20 percent of the natural gas consumed in
the U.S.; Gas Distribution and Storage, which serves approximately
3.8 million retail customers in Ontario and Quebec;
and Renewable Power Generation, which generates approximately 1,763
MW of net renewable power in North
America and Europe. The Company's common shares trade on
the Toronto and New York stock exchanges under
the symbol ENB. For more information,
visit www.enbridge.com.
Forward Looking Information
This news release includes certain forward-looking statements
and information (FLI) to provide potential investors and
shareholders of Enbridge Inc. (Enbridge or the Company) with
information about Enbridge and its subsidiaries and affiliates,
including management's assessment of their future plans and
operations, which FLI may not be appropriate for other purposes.
FLI is typically identified by words such as "anticipate",
"expect", "project", "estimate", "forecast", "plan", "intend",
"target", "believe", "likely" and similar words suggesting future
outcomes or statements regarding an outlook. All statements other
than statements of historical fact may be FLI. In particular, this
news release contains FLI pertaining to, but not limited to,
information with respect to the sale of Enbridge's interest in
Noverco Inc, including regulatory approvals and the closing
thereof; anticipated use of proceeds; financial strength and
flexibility; anticipated distributable cash flow; and accretion to
available cash flow from operations.
Although we believe that the FLI is reasonable based on the
information available today and processes used to prepare it, such
statements are not guarantees of future performance and you are
cautioned against placing undue reliance on FLI. By its nature, FLI
involves a variety of assumptions, which are based upon factors
that may be difficult to predict and that may involve known and
unknown risks and uncertainties and other factors which may cause
actual results, levels of activity and achievements to differ
materially from those expressed or implied by the FLI, including,
but not limited to, the following: energy transition, including the
drivers and pace thereof; the COVID-19 pandemic and the duration
and impact thereof; the expected supply of, demand for and export
of crude oil, natural gas, natural gas liquids, liquified natural
gas and renewable energy; expected prices of energy; anticipated
utilization of our existing assets; exchange rates; inflation;
interest rates; availability and price of labor and construction
materials; operational reliability and performance; customer and
regulatory approvals; maintenance of support and regulatory
approvals for projects; anticipated in-service dates; weather; the
realization of anticipated benefits and synergies of transactions;
governmental legislation; litigation; changes in regulations
applicable to our businesses; political decisions; impact of
capital project execution on the Company's future cash flows;
credit ratings; capital project funding; hedging program; expected
EBITDA and adjusted EBITDA; expected future cash flows and expected
future DCF and DCF per share; estimated future dividends; financial
strength and flexibility; debt and equity market conditions,
including the ability to access capital markets on favorable terms
or at all; cost of debt and equity capital; economic and
competitive conditions; and changes in tax laws and tax rates. We
caution that the foregoing list of factors is not exhaustive.
Additional information about these and other assumptions, risks and
uncertainties can be found in applicable filings with Canadian and
U.S. securities regulators (including the most recently filed Form
10-K and any subsequently filed Form 10-Q, as applicable). Due to
the interdependencies and correlation of these factors, as well as
other factors, the impact of any one assumption, risk or
uncertainty on FLI cannot be determined with certainty. Except to
the extent required by applicable law, we assume no obligation to
publicly update or revise any FLI made in this presentation or
otherwise, whether as a result of new information, future events or
otherwise. All FLI in this presentation and all subsequent FLI,
whether written or oral, attributable to Enbridge or persons acting
on its behalf, are expressly qualified in its entirety by these
cautionary statements.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
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SOURCE Enbridge Inc.