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