CALGARY, ALBERTA--(CCNMatthews - Jul 20, 2004) -
Not for distribution to U.S. newswire services or for
dissemination in the U.S.
Enbridge Inc. ("Enbridge") and AltaGas Income Trust ("AltaGas")
announced today that AltaGas has filed a preliminary prospectus
with the securities regulatory authorities throughout Canada in
connection with a secondary offering of Trust Units of AltaGas by
Enbridge. The offering is being underwritten by a syndicate led
by Scotia Capital Inc., CIBC World Markets Inc. and RBC Capital
Markets. The offering will be approximately $225 million and is
expected to close on or about August 10, 2004. AltaGas will not
receive any of the proceeds from the offering.
"The AltaGas investment has been a good investment for Enbridge,"
said Patrick D. Daniel, President & Chief Executive Officer of
Enbridge. "However, the timing is right to sell part of our
AltaGas investment and prudently reinvest the gain, together with
our original capital, in other North American energy
infrastructure that is more closely aligned with our core
businesses."
David Cornhill, Chairman and Chief Executive Officer of AltaGas
said "Since Enbridge made its initial investment in AltaGas five
years ago we have tripled our asset base and grown our market
capitalization by six times to over one billion dollars. Enbridge
has been a good financial investor and received very good returns
on their investment. We are supportive of their disposition and
are pleased with the opportunity to realize our full growth
potential and deliver substantial unitholder value to an expanded
unitholder base."
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".
AltaGas moves energy from its source to the end user, adding
value through the process. Its steadily expanding asset base
today includes natural gas gathering and processing facilities,
interests in ethane and natural gas liquids extraction plants,
and transmission pipelines. AltaGas distributes natural gas to
Alberta customers through AltaGas Utilities Inc., to customers in
the Northwest Territories through the Ikhil Gas Project and
distributes gas in Nova Scotia through its interest in Heritage
Gas Limited. The Trust provides energy services to customers,
including marketing of natural gas and natural gas liquids and
sale of power from its power purchase based arrangements.
AltaGas' Trust Units are listed on the Toronto Stock Exchange
under the symbol ALA.UN.
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, or 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-