Enbridge Inc. to increase stake in Enbridge Energy Partners
Enbridge Inc., a leading Canadian firm in energy transportation and distribution in North America and internationally, has finally agreed to increase its stake in Houston-based Enbridge Energy Partners LP (EEP), a move the company hopes will increase its earnings per share and help long-term growth.
The Canadian firm said on Monday that it has committed to purchase 16.25 million common units of Enbridge Energy at $30.76 per unit. The purchase deal is valued at about $500 million in aggregate.
The units will be acquired by Enbridge's subsidiary, Enbridge Energy Company, Inc., the general partner of EEP, which will also contribute approximately US$10 million to maintain its 2.0% general partner interest.
Enbridge Energy Partners, L.P. owns and operates a diversified portfolio of crude oil and natural gas transportation systems in the United States. Its principal crude oil system is the largest transporter of growing oil production from western Canada.
The deal has been approved by an independent committee of the Board of Directors of Enbridge Energy Management, L.L.C. on behalf of EEP. Pursuant to the transaction, Enbridge's overall ownership in EEP will go up from about 15% to about 27%.
The transaction is expected to close December 4, 2008.
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