CALGARY, ALBERTA--(CCNMatthews - Sept. 29, 2004) - Not for distribution to U.S. newswire services or for dissemination in the U.S.
Enbridge Inc. today announced that it has entered into an agreement to sell 4,800,000 Trust Units of AltaGas Income Trust ("AltaGas") to a group of Canadian underwriters at a price of $19.85 per unit.
Enbridge will realize net proceeds of approximately $95 million and record a pre-tax gain of approximately $36 million. Following the closing of the transaction, which is expected to occur on October 4, 2004, Enbridge will no longer hold any interest in AltaGas.
The underwriting syndicate was led by Scotia Capital Inc., CIBC World Markets Inc. and RBC Capital Markets, and included BMO Nesbitt Burns Inc., National Bank Financial Inc., TD Securities Inc., Clarus Securities Inc., HSBC Securities (Canada) Inc., Canaccord Capital Corporation, FirstEnergy Capital Corp. and Peters & Co. Limited.
Enbridge understands that the underwriters intend to re-sell the Trust Units through the facilities of the Toronto Stock Exchange.
Together with the sale of 13,397,500 AltaGas Trust Units that closed in August of 2004, Enbridge will realize aggregate net proceeds of approximately $345 million and record a pre-tax gain of approximately $120 million from the sale of its investment in AltaGas.
Enbridge Inc. is a leader in energy delivery in North America.
Enbridge owns and operates, in Canada and the U.S., the world's longest crude oil and liquids pipeline system, and Canada's largest natural gas distribution company, providing gas to 1.7 million customers in Ontario, Quebec, New Brunswick and New York State. The Company also is involved in international energy projects, and the natural gas transmission and midstream businesses. The Company employs approximately 4,000 people, primarily in Canada, the U.S. and South America. Enbridge common shares trade on the Toronto Stock Exchange in Canada and on the New York Stock Exchange in the U.S. under the symbol "ENB".
This news release does not constitute an offer to sell or a solicitation of an offer to buy the Trust Units in any jurisdiction.
The Trust Units offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States of America.
-30-