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Enbridge sells financial interest in Noverco for $1.14 billion

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Enbridge Inc. announced that a subsidiary has entered into a definitive agreement to sell its 38.9% non-operating minority ownership interest in Noverco Inc. (Noverco) to Trencap L.P. for $1.14 billion in cash, net of Noverco non-recourse debt assumed by Trencap L.P. This represents a valuation of approximately 29x reported 2020 GAAP earnings of $39 million.

Closing of the transaction is expected to occur by early 2022 and is subject to the receipt of regulatory approvals and customary closing conditions. Sale proceeds will initially be used to repay short term debt, and on this conservative basis the transaction is expected to be neutral to distributable cash flow per share.

Noverco is currently owned 38.9% by Enbridge and 61.1% by Trencap L.P., a consortium lead by Caisse de dépôt et placement du Québec (CDPQ). Noverco indirectly owns Énergir, L.P. which is a Quebec-based business with interests primarily in gas distribution and power distribution in Quebec and Vermont.

"We're pleased to opportunistically monetize this non-strategic financial investment in Noverco at an attractive valuation and surface this value for our shareholders." said Colin Gruending, Enbridge's Chief Financial Officer. "This transaction further enhances our already sector-leading financial strength and flexibility and demonstrates our disciplined approach to capital allocation," he added.

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200, Fifth Avenue Place
425 - 1st Street S.W.
Calgary, AB
CA, T2P 3L8


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