En­bridge of­fers $11.4 bil­lion in stock to in­vestors in four af­fil­i­ate com­pa­nies

The Guardian (Charlottetown) - - BUSINESS -

CAL­GARY — En­bridge Inc. an­nounced a re­struc­tur­ing plan Thurs­day that would see it of­fer $11.4 bil­lion in shares to coin­vestors in four af­fil­i­ated busi­nesses, in or­der to off­set risks caused by the loss of a U.S. tax al­lowance for cer­tain in­ter­state pipe­lines.

If the se­ries of trans­ac­tions un­fold as an­tic­i­pated, in­vestors in all the com­pa­nies and lim­ited part­ner­ships would hold shares in En­bridge, one of North Amer­ica’s largest en­ergy in­fra­struc­ture com­pa­nies.

The Cal­gary-based com­pany holds pipe­lines in the United States that are los­ing tax ad­van­tages pre­vi­ously pro­vided to so-called mas­ter lim­ited part­ner­ships, or MLPs. En­bridge has two MLPs, En­bridge En­ergy Part­ners, and Spectra En­ergy Part­ners. The com­pany’s move comes af­ter En­bridge had al­ready be­gun to sim­plify its or­ga­ni­za­tional struc­ture.

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