Enbridge to buy out Enbridge Income Fund Holdings for $4.7 billion

Enbridge to buy out Enbridge Income Fund Holdings for $4.7 billion


Enbridge Inc. agreed to acquire the rest of the its publicly traded Canadian energy, transportation and power generation business for $4.7 billion in a push to simplify its corporate structure.

The deal would see Enbridge buy out all of the outstanding shares for Enbridge Income Fund Holdings Inc., which includes the largest oil pipeline crossing into the U.S. from Canada and more than 1,400 megawatts of renewable and alternative power generating capacity, the company said Tuesday in a statement.

The deal is part of a broader industry trend for pipeline companies to buy out their master limited partnership units after tax changes and as the investment vehicles become less popular.

Each common share of Enbridge Income Fund will be exchanged for 0.7350 common shares of Enbridge and $0.45 cash per Enbridge Income Fund share.

Bloomberg.com

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