Enbridge Income Fund Holdings Inc. EBGUF

Just too be clear on this offer?

[soundandfury]

The offer is for 29.38 per share........so if enb share price declines the ratio will go higher?? That is how i see it????

[marcrobert]

No, you get .70 shares of enb, price irrelevant, they will both move in lockstep now.

[soundandfury]

the press release was quite confuseing? It said .7029 of an embridge share for a cd value of 29.38.......so confused...lol

[TickerTwit]

The wording in the NR could have been better. The offer was 29.38, which includes a 5% premium on the May/16 closing price. The conversion ratio is a consequence of the offer. .

[rk67]

The wording in the NR was fine: Under today's restructuring proposal: ENF shareholders will receive 0.7029 common shares of Enbridge per ENF share, representing a value of CAN$29.38 per ENF share, based on the closing price of Enbridge common shares on the TSX on May 16, 2018 , reflecting a 5% premium to the closing price of ENF's common shares on the TSX on May 16, 2018 . "

[stocktalk]

There is no other option we have to say yes, there will be no more drop downs. Enf dividend will get eroded. I just don't like the ratio offered !

[TickerTwit]

When buyouts are worked out, they don't begin with ratios. They begin with valuations. The 27.98+5%=29.38 came first, but the wording in the NR could, mistakenly, be taken to imply that the ratio preceded the valuation and dictated the premium. The wording is not incorrect, but it is weak. There is at least one commentor here who took it the wrong way and continues to be confused (his wording)

[Sadie222]

The market did the valuation. The conversion is based on market pricing. The premium might be to diffuse some of the angst over the div reduction, or it might be something else. ENB isn’t buying something they don’t already own as majority shareholder, so it’s not your conventional takeover. whethere the valuation is fair is another question, which the review committee will look at. There is no

[pierrelebel]

TT - When you read the ENB announcement, the first thing you see: Highlights of the proposed restructuring: Enbridge to buy-in sponsored vehicles (EEP/EEQ, SEP and ENF) in exchange for Enbridge common shares Fixed exchange ratios reflect an aggregate value of CAN$11.4 billion, or 272 million Enbridge common shares When you look at the section dealing with ENF specifically, you see

[freedomfiddy]

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[TickerTwit]

Nor is it confusing to me, but I was educated in how buyouts are carried out and I know the ratio is a consequence, not a premise. Some readers took the ratio to be the premise, presumably because it was mentioned first in the NR. .

[freedomfiddy]

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[wateroperator]

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