CALGARY, ALBERTA--(Marketwire - Feb. 22, 2011) - Enbridge Inc. (TSX:ENB) (NYSE:ENB) today announced that its Board of Directors will recommend that shareholders approve a two-for-one stock split at the Company's Annual and Special Meeting of Shareholders on May 11, 2011. In addition to shareholder approval, the stock split is subject to regulatory approvals. Upon completion of the stock split, the number of outstanding shares would double from approximately 385 million to approximately 770 million. Enbridge's last stock split occurred in May 2005.
"This proposed stock split reflects the Board's and Management's continuing confidence in Enbridge's business fundamentals and ability to deliver solid earnings and cash flow in the future. Based on the average annual growth in earnings per share of 10% which we expect through the middle of the decade, we continue to see valuation upside in our shares," said Patrick D. Daniel, President & Chief Executive Officer, Enbridge Inc. "The proposed split would keep the trading range of the shares better aligned with our peers in the energy infrastructure business. It would also make Enbridge stock more accessible to retail shareholders and should enhance liquidity for our investors."
If approved by shareholders on May 11, 2011, and subject to regulatory approvals, the record date for the stock split is expected to be May 25, 2011. As of that date, each shareholder of record would receive one additional common share for each common share currently held. Subject to the preceding approvals and pursuant to the rules of the Toronto Stock Exchange, Enbridge's common shares would commence trading on a divided basis at the opening of business on May 20, 2011, which is the second trading day preceding the record date. Subject to similar approvals, the trading of the common shares on a divided basis on the New York Stock Exchange would occur on May 20 as well. Enbridge will announce the results of the shareholder vote in respect of the proposed stock split following the meeting and vote. If approved, it is anticipated that new Enbridge stock certificates would be mailed shortly after May 25, 2011.
Enbridge Inc., a Canadian company, is a North American leader in delivering energy and one of the 2011 Global 100 Most Sustainable Corporations. As a transporter of energy, Enbridge operates, in Canada and the U.S., the world's longest crude oil and liquids transportation system. The Company also has a growing involvement in the natural gas transmission and midstream businesses, and is expanding its interests in renewable and green energy technologies including wind and solar energy, hybrid fuel cells and carbon dioxide sequestration. As a distributor of energy, Enbridge owns and operates Canada's largest natural gas distribution company, and provides distribution services in Ontario, Quebec, New Brunswick and New York State. Enbridge employs approximately 6,400 people, primarily in Canada and the U.S. ranked as one of Canada's Greenest Employers, and one of the Top 100 Companies to Work for in Canada. Enbridge's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit enbridge.com
Certain information provided in this news release constitutes forward-looking statements. The words "anticipate", "expect", "project", "estimate", "forecast" and similar expressions are intended to identify such forward-looking statements. Although Enbridge believes that these statements are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a variety of risks and uncertainties pertaining to operating performance, regulatory parameters, weather, economic conditions and commodity prices. You can find a discussion of those risks and uncertainties in our Canadian securities filings and American SEC filings. While Enbridge makes these forward-looking statements in good faith, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary significantly from those expected. Except as may be required by applicable securities laws, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made herein or otherwise, whether s a result of new information, future events or otherwise.
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