Enbridge Income Fund HoldingsENF.TOCOMMENTJun 02, 2014Stock price when the opinion was issued
As of Nov 10, 2018. Market Open.
Enbridge wants to buy ENF to simplify their corporate structure. In the States, Enbridge offered a small premium, while in Canada, they offered a premium. He suspects the directors of ENF-T are waiting for a higher premium (or that's what he would do). Pays a higher yield than Enbridge Inc. but lacks the dividend growth potential.
The whole Enbridge complex is a very, very sophisticated set of financial engineering with drop-down companies, where they are able to sell things into these partnerships, Get investors to finance that part of the business, and in some cases, the company takes back preferred shares with the hope of diluting themselves down over time. One of the big aspects they have are the big wind farms. He worries about government contracts and their sustainability. He would be very, very cautious.