December 11, 2012 [Power Engineering] - Enbridge Income Fund Holdings Inc. (the "Company") and Enbridge Income Fund (the "Fund") announced the closing today of the acquisition by indirect wholly-owned subsidiaries of the Fund of entities which own crude oil storage and renewable power generation assets (collectively, the "Assets") for $1.164 billion, subject to working capital adjustments, from Enbridge Inc. and certain of its direct and indirect wholly-owned subsidiaries.
A detailed discussion of the Assets and the acquisition transaction (the “Transaction”) is described in the news release dated October 25, 2012.
“We are pleased to add these high quality assets to the Fund’s low-risk energy infrastructure portfolio,” said John Whelen, President, Enbridge Income Fund Holdings Inc. “They are all underpinned by long-term fixed price contracts which generate steady cash flow and will serve to further diversify the Fund’s overall business mix.
“Going forward, we expect that Crude Oil Transportation and Storage will generate roughly 40% of distributable cash flow, while Green Power and Gas Transmission will contribute approximately 40% and 20% respectively,” said Mr. Whelen.
“The acquisition will add 119 megawatts (MW) of renewable power generation capacity to our existing green energy portfolio, bringing the total to 524 MW. It will also substantially scale up our Crude Oil Transportation and Storage business in Western Canada,” said Mr. Whelen.
“With the successful completion of this acquisition, and the soon-to-be completed Bakken Expansion Program to increase crude oil pipeline capacity in southeast Saskatchewan, I am pleased to advise that our Board of Directors has approved an 8% increase in the Company’s monthly dividend,” said Mr. Whelen.
