CALGARY, ALBERTA--(CCNMatthews - July 21, 2004) -
Not for distribution to U.S. newswire services or for
dissemination in the U.S.
Further to its announcement of July 20 identifying its intent to
divest a portion of its investment in AltaGas Income Trust
("AltaGas"), Enbridge Inc. today announced that it has sold
11,650,000 Trust Units of AltaGas representing approximately 64%
of Enbridge's total investment in AltaGas. The Trust Units were
sold to a group of Canadian underwriters at a price of $19.75 per
unit.
In addition, the underwriters have been granted an over-allotment
option to purchase an additional 1,747,500 Trust Units at the
issue price of $19.75 per unit at any time up to 30 days after
closing of the offering. The sale, excluding the over-allotment,
will realize net proceeds to Enbridge of approximately $217
million and will close on or about August 10.
Excluding the over-allotment, net proceeds from the sale of
Trusts Units will generate a resulting pre-tax gain of
approximately $72 million, which will be recorded in the
Company's third quarter results, and the Company's remaining
interest in AltaGas has decreased from approximately 36% to 13%.
Patrick D. Daniel, President & Chief Executive Officer of
Enbridge, said, "The AltaGas investment has been and continues to
be a good investment for Enbridge. However, we decided the timing
was right to sell part of our AltaGas investment and reinvest the
proceeds in other North American energy infrastructure that is
more closely aligned with our core businesses - liquids
pipelines, gas pipelines and gas distribution. We will continue
to monitor our remaining investment 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., HSBC
Securities (Canada) Inc. and Peters & Co. Limited.
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.
When used in this news release, the words "anticipate", "expect",
"project", 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,
economic conditions and commodity prices. You can find a
discussion of those risks and uncertainties in our Canadian
securities law 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. Enbridge assumes no obligation
to publicly update or revise any forward-looking statements made
herein or otherwise, whether as a result of new information,
future events or otherwise.
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