CALGARY, ALBERTA--(CCNMatthews - Aug. 15, 2006) - Enbridge Inc. (TSX:ENB) (NYSE:ENB) ("Enbridge") today announced that it has acquired 5.4 million of Class C units of Enbridge Energy Partners, L.P. (NYSE:EEP) ("Enbridge Partners"), representing an investment of approximately US$250 million, through its indirect wholly owned subsidiary Enbridge Energy Company, Inc., the general partner of Enbridge Partners ("General Partner"). An additional 5.4 million Class C units were issued and sold by Enbridge Partners to CDP Infrastructures Fund G.P., a subsidiary of Caisse de dépôt et placement du Québec. In addition, the General Partner will contribute approximately $10 million to Enbridge Partners to maintain its 2.0 percent general partner interest.
Enbridge's effective interest in Enbridge Partners will increase from approximately 11 percent to over 16 percent after completion of the transaction. Commenting on the transaction, Enbridge Executive Vice President, Chief Financial Officer & Corporate Development, Stephen J. Wuori said, " We believe that this is an ideal time to increase our interest in the Partnership given the Partnership's very attractive slate of low risk infrastructure projects and future prospects for growth."
Until August 15, 2009, the holders of Class C Units will receive quarterly distributions of additional Class C Units with a value equal to the quarterly cash distributions declared by Enbridge Partners for its Class A Common Units. The value of the additional Class C Units will be based on the market value of the Class A Common Units.
After August 15, 2009, the holders of Class C Units will receive quarterly cash distributions equal to those paid to the holders of Class A Common Units. After August 15, 2009, the Class C Units will convert into Class A Common Units on a one-for-one basis upon the receipt of approval of the holders of outstanding units in accordance with the then-existing requirements of the principal national securities exchange on which the Class A Common Units are listed.
ABOUT ENBRIDGE INC.
Enbridge Inc. (www.enbridge.com) is a leader in energy transportation and distribution in North America and internationally. As a transporter of energy, Enbridge operates, in Canada and the United States, the world's longest crude oil and liquids pipeline system. Enbridge also has international operations and a growing involvement in the natural gas transmission and midstream businesses. As a distributor of energy, Enbridge owns and operates Canada's largest natural gas distribution company, which provides distribution services in the provinces of Ontario and Quebec, and in New York State; and is developing a gas distribution system for the Province of New Brunswick. Enbridge is a Canadian company and its common shares trade on the Toronto Stock Exchange in Canada and on the New York Stock Exchange in the United States under the symbol ENB.