Enbridge Inc. has successfully closed a $4.6 billion share offering, a strategic move announced in conjunction with its acquisition of three U.S. gas utilities earlier in the week. The energy company disclosed that it has issued a total of 102,913,500 shares as part of this initiative, with the underwriters exercising the full over-allotment option.
The offering price within the bought-deal financing arrangement was set at $44.70 per share. This move plays a crucial role in Enbridge’s financing strategy to facilitate the acquisition of several U.S. gas utilities. It is noteworthy that the exercise of the over-allotment option not only reduces but also further de-risks the company’s financing requirements for funding these acquisitions.
Enbridge, headquartered in Calgary, has entered into an agreement to acquire three prominent U.S. gas utility companies: the East Ohio Gas Company, Questar Gas Company along with its related Wexpro companies, and the Public Service Company of North Carolina. These entities are currently under the ownership of Virginia-based Dominion Energy Inc.
As part of this acquisition, Enbridge has committed to paying a total of US$9.4 billion in cash and assuming US$4.6 billion in debt. This strategic move aligns with Enbridge’s ongoing efforts to strengthen its position and expand its presence in the energy industry.
