Enbridge Income Fund Holdings Inc. EBGUF

Growth without dropdowns?

[autofocus111]

The discussion here suggest that if shareholders reject the proposed roll-in of ENF into ENB, then ENF will be unable to grow since ENB will not drop down any more assets. But what exactly prevents ENF from pursuing  acquisitions of assets that are outside the ENB umbrella?

[marketsense]

A rejection by ENF shareholders would be at this point a major roadblock to ENB in their corporate plans and would cause them to look at their options.   Sweetening the offer in order to move forward makes a lot of sense and option 2,  let ENF wilt on the vine and then come back again also makes sense.   Option 2 just takes more time and could delay ENB for a while.   It all

[TickerTwit]

ENF isn't big enough to absorb infrastructure projects on its own, and would have to dilute more than it ever has before with the ENB mothership no longer helping. Or take on heavier debt, which would alter the risk metric. On a per-share basis, we wouldn't see comparable growth to what we saw with ENB, and we'd regret voting to reject the buyout. But, for reasons that should be

[TG1960]

I think ENB goes higher very soon and ENF will follow...I can see $38 when the deal is consummated.

[stocktalk]

If we don't get a respectable offer for the crown jewels for enf, then I can see ppl or bip.un buying us out with a generous offer !

[TickerTwit]

ENB won't let ENF go, so I think the offer would have to be for all of Enbridge. .

[borne2run]

stocktalk, a little research is in order.  Enbridge owns about 70% of ENF.to.  Enbridge Income Fund will not be sold to anyone.  The parent, ENB, may sell aseets, but they won't be selling the income fund. And the roll-up into ENB is the best all-round solution as it will mitigate regulatory and tax changes on either side of the border.

[TG1960]

19.9% and one special voting share...do some research yourself.

[TickerTwit]

ENB has exchange rights that would allow it to reach 77.6% ownership of units in Enbridge Income Fund (EIF -- this is not ENF). ENF owns only one thing: units in EIF. I'm still trying to figure it all out, but it appears at first glance that ENB has final control of the physical assets. ENF can stop ENB from rolling it up, and thereby continue to exist and receive payouts from EIF, but it can

[TG1960]

Yes its one confusing arrangement...one way or another ENF will be rolled into ENB...other options will not happen...at what price...I'm thinking $38...I'll miss that monthly divy even though ENB quarterly is rich as well...its just the waiting longer...oh well.

[stocktalk]

$ 38 Sweet !

[autofocus111]

It is correct that ENF only holds units in EIF. As I understand it, 80% of ENF is publicly owned, and ENB holds the remaining 20%. Further, ENB can never own more than 20% of ENF. ENB has the 'special voting share' in ENF too that I would assume gives them effective majority voting control over ENF. This all said, my original question stands..While the market cap of ENF is only ~$5B (also