Enbridge Income Fund Holdings Inc. EBGUF

RE:RE:RE:RE:RE:RE:RE:why?

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Correct. I read through the press release. No new shares are being issued. ENB is merely selling part of its holdings in ENF to the public. ENF stated at their last earnings report they would not need to issue any new equity to fund their growth projects in 2017.

 

>>>The Secondary Offering of EIFH shares is consistent with Enbridge's previously announced strategy to gradually reduce its economic interest in the Fund Group (made up of Enbridge Income Fund, Enbridge Commercial Trust and Enbridge Income Partners LP) to approximately 80 percent over time in conjunction with the execution of the Fund Group's secured growth program. The sale of the South Prairie Region liquids pipeline assets in December 2016 more than satisfied the Fund Group's equity requirements through 2017. The completion of the Secondary Offering will increase the market value of EIFH's public float, and is expected to enhance its trading liquidity and cost of capital over time. Immediately prior to the closing of the transaction, Enbridge will exchange ordinary units of Enbridge Income Fund for an equivalent amount of common shares in EIFH. In order to retain its 19.9 percent interest in EIFH, Enbridge will retain a portion of these common shares and sell the balance of common shares under the Secondary Offering. EIFH will not receive any proceeds from the Secondary Offering and Enbridge will pay all expenses and fees associated with the Secondary Offering. Enbridge's economic interest in the Fund Group will be reduced from 86.9 percent to 84.9 percent (84.6 percent if the over-allotment option is exercised in full).