CALGARY, ALBERTA--Enbridge today announced that it has closed the
sale of its retail energy services business to Centrica North
America, a division of Centrica plc, a U.K.-based energy services
firm, for Cdn$1 billion in cash. The closing follows receipt of
approvals from the Competition Bureau and Investment Canada.
The sale involves the retail energy products and services
businesses of Enbridge, including an estimated 1.3 million water
heater rental units and 14 retail outlets in southern Ontario, the
Company's energy services operations in Philadelphia, some parts
of the Enbridge Services business in B.C., and more than 1,400
employees. The effective date of the transaction is May 7, 2002.
Enbridge will record a net gain on the sale of energy services of
approximately $210 million, after taxes and other costs, upon
completion of the transaction. The net proceeds from the sale
will be used for strategic growth and debt reduction.
Patrick D. Daniel, Enbridge President & Chief Executive Officer,
said, "The sale increases our flexibility to focus on our core
businesses and capitalize on infrastructure growth opportunities.
Our plans are to invest roughly $5 billion in capital over the
next five years. And although we have a large and growing base of
operating cash flow, the sale of non-strategic assets is an
effective way of financing opportunities that we think will
high-grade our asset base and profitability. We thank the
Enbridge Services employees for their hard work these past few
years, and wish them well with Centrica. We are confident that
Centrica will continue the record of care and service to which our
customers are accustomed."
Enbridge Inc. is a leader in energy transportation and
distribution in North America and internationally. 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 is involved in international energy projects and
has 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 Ontario, Quebec and New
York State; and is developing a gas distribution system for the
province of New Brunswick. With completion of the sale of the
retail energy services business, Enbridge will employ
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. Information about Enbridge is available on
the Company's web site at www.enbridge.com.
When used in this news release, the words "anticipate", "expect",
"project", "believe", "estimate", "forecast" and similar
expressions are intended to identify forward-looking statements,
which include statements relating to pending and proposed
projects. Such statements are subject to certain risks,
uncertainties and assumptions pertaining to operating performance,
regulatory parameters, weather and economic conditions and, in the
case of pending and proposed projects, risks relating to design
and construction, regulatory processes, obtaining financing and
performance of other parties, including partners, contractors and
suppliers.
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