Enbridge realizes gain on sale of AltaGas investment
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE U.S./
CALGARY--(CCNMatthews - July 21) - AltaGas Income Trust ("AltaGas") announced
that Enbridge Inc. has sold 11,650,000 Trust Units of AltaGas to a group of
Canadian underwriters at a price of $19.75. This sale reduces Enbridge's
interest in AltaGas from approximately 36% to 13%. The sale, excluding the
over-allotment, will realize net proceeds to Enbridge of approximately $217
million and will close on or about August 10.
In addition, the underwriters have been granted an over-allotment option to
purchase an additional 1,747,500 Trust Units at the issue price of $19.75 per
unit at any time up to 30 days after closing of the offering. Should the
over-allotment option be taken up Enbridge's interest in AltaGas would be
reduced to under 10%.
"We are very pleased with the strong market response and successful sale of
our units by Enbridge," said David Cornhill, Chairman and Chief Executive
Officer of AltaGas. "Since Enbridge made its initial investment in AltaGas
five years ago we have tripled our asset base and grown our market
capitalization by six times to over one billion dollars. Enbridge has been a
good investor and received very good returns on their investment. We are
supportive of their disposition and are pleased with the opportunity to
realize our full growth potential and deliver substantial unitholder value to
an expanded unitholder base."
The underwriting syndicate was led by Scotia Capital Inc., CIBC World Markets
Inc. and RBC Capital Markets, and included BMO Nesbitt Burns Inc., National
Bank Financial Inc., TD Securities Inc., Clarus Securities Inc., HSBC
Securities (Canada) Inc., Canaccord Capital Corporation, FirstEnergy Capital
Corp., and Peters & Co. Limited.
AltaGas moves energy from its source to the end user, adding value through
the process. The Trust has consolidated assets totalling almost $950 million
and a market capitalization of approximately $1 billion. Our steadily
expanding asset base today includes natural gas gathering and processing
facilities, interests in ethane and natural gas liquids extraction plants,
and transmission pipelines. AltaGas distributes natural gas to Alberta
customers through AltaGas Utilities Inc., to customers in the Northwest
Territories through the Ikhil Gas Project and distributes gas in Nova Scotia
through its interest in Heritage Gas Limited. The Trust provides energy
services to customers, including marketing of natural gas and natural gas
liquids and sale of power from its power purchase based arrangements.
AltaGas' Trust Units are listed on the Toronto Stock Exchange under the
symbol ALA.UN. The Trust is included in the S&P/TSX Capped Income Trust Index
and the S&P/TSX Capped Energy Trust Index.
This news release does not constitute an offer to sell or a solicitation of
an offer to buy the Trust Units in any jurisdiction. The Trust Units offered
have not been, and will not be, registered under the United States Securities
Act of 1933, as amended, and may not be offered or sold within the United
States of America.
When used in this news release, the words "anticipate," "estimate," and
similar expressions are intended to identify forward looking statements. Such
statements are subject to certain risks, uncertainties and assumptions that
could cause actual results to differ materially from those contemplated in
the forward looking statements. These risks and uncertainties include
operating performance, regulatory and environmental issues, weather and
economic conditions, competition and financing availability. For additional
information on these and other factors see the reports filed by AltaGas with
Canadian securities regulators. AltaGas disclaims any intention or obligation
to update or revise any forward looking information whether as a result of
new information or future event.