RE:RE:RE:RE:RE:RE:RE:the committee Quite serious. I don't think ENB would be shooting itself. They would still get ENF payouts, they would still have the majority control to veto any future dilution (they would veto as needed to avoid losing voting control of operational assets), and they can simply halt dropdowns (they're likely going to anyway) and wait us out. ENF share price will fall after it becomes clear to the market that growth is over, and then ENB can buy ENF for less. We'd be begging for it once the situation become clear. [If I were running ENB this is exactly what I would do on a failed vote, but I'd be quiet about it.]
Why should ENB dilute itself needlessly?
The 20% have some limited control, enough to be an obstacle, but ENB (the beating heart) can choke off bloodflow (dropdowns) to ENF (a limb). ENB can stop any minority voting effort at will.
But that's just a scenario, and I can't put a probability on it. I wonder what would have happened if I had tried to ask the question on today's call: "So, what will you do if the ENF vote fails?"
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rk67 wrote:
But ENB holds 80% of the shares, so they are effectively at the mercy of the other 20% holders. Are you serious proposing that ENB will "not do anything" and thus shoot itself in the foot to the tune of 80% of ENF???
The 4:1 leverage that the 20% shareholders have is significant; it would be in ENB's best interest to keep those 20% happy for their (ENB's) own sake, no?