The Canadian Liquids Pipelines business consists of Canadian Mainline System held in Enbridge Pipelines (EPI) and the Regional Oil Sands system held in Enbridge Pipelines Athabasca (EPA).
The Canadian renewable energy assets include a 50% interest in the Saint Robert Bellarmin wind farm, a 67.5% interest in Lac Alfred wind farm, and a 80% stake in the Massif du Sud wind farm, all based in Quebec.
Also included is a 50% interest in the Blackspring Ridge wind farm in Alberta, with a combined generation capacity of 830MW.
Enbridge Income Fund president Perry Schuldhaus said: "The transaction significantly transforms the scale of the Fund’s business, provides it with a low risk source of secured growth and supports an expected 10% increase in the company’s dividend following closing with further anticipated dividend growth through 2019.
"Furthermore, the Fund will continue to benefit from Enbridge’s operating expertise, including its world-class major projects capabilities, as Enbridge will continue to act as the Administrator of the Fund."
The transaction involves transfer of $18.7bn of equity from Fund and Enbridge Income Partners, an indirect subsidiary of the fund, and the assumption of $11.7bn in debt.
Subject to regulatory approvals, the approval of the shareholders, and a previously planned transfer by EPI to Enbridge subsidiaries of EPI’s US pipeline assets, the transaction is expected to be closed in September of this year.
The acquisition is expected to enable Enbridge Income to improve its dividend by an expected 10% up on completion, followed by an additional 10% increase at the beginning of 2016 and each year thereafter through 2019.
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