Enbridge Income Fund Holdings Inc. EBGUF

the committee

[leo101]

when is the committee going to announce their opinion?  i'm pretty sure they knew what the statement would be the day they were appointed.

[stocktalk]

The offer should be one for one of equal dollar value.

[TickerTwit]

But in reality (not our imaginations) they aren't of equal value, are they? When you take out the 5% buyout premium, ENF is trading at 67% of ENB as I write this. In the past, it has often been much lower. And it has no future if the buyout fails (which ENB has repeatedly made clear, as they did again today on the call). .

[leo101]

considering that enb owns about 80% of enf,  theoretically by increasing the value of enf, they are strengthening their own balance sheet.  i think they can easily give the offer a small bump to keep everyone happy and enrich themselves.  i'll still vote no with the hope of getting a better ratio.

[TickerTwit]

We will hopefully get some inkling of how likely a better offer is when the committee reports to us. But anyone thinking we'll get a 50% premium (1-for-1) is just off the beam. Too much better than 5% would cancel out the benefits to ENB of rolling ENF back in so there's a limit somewhere, above which ENB says "We'll keep our projects from now on, and we'll make a lower offer

[TickerTwit]

This is from today's call: "... the ability for the vehicles to grow at least in our view has been dampened and compromised." -- Albert Monaco. [Note: I'm drawing on SeekingAlpha's transcript service, and their versions often have serious errors.] Be aware that if you vote to refuse the offer, that is exactly what you voted for and ENB need not do anything. In the end

[rk67]

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?

[rk67]

In fact, it's worse than that. Only 1/2 of the 20% have to vote one way or the other, so you have 10% controlling 90%. Now, they might have some cr*p in the voting form that gives a default vote, so you may have to actively vote against it, but still. ENB had best tread very carefully if it's concerned about its 80% stake.

[TickerTwit]

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

[Sadie222]

According to the org chart, ENB owns about 20% plus one special, separate share. The other 80% are publicly held.

[rk67]

Of course, now I can't find where I got that info. It's possible I'm labouring under a false assumption; in which case, I sincerely apologize! :-(

[TG1960]

Where do you get that 80% figure from...I see 19.9% plus one special voting share?