Enbridge Income Fund HoldingsENF.TOCOMMENTFeb 27, 2015Stock 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.
They essentially wait for Enbridge (ENB-T) to build out pipelines and then swap them into their Hold Cos. He likes the recurring revenue stream. Recently issued $1 billion of 30 year debt to acquire another pipeline from Enbridge. There is some talk about buying the entire Canadian liquid pipeline business from Enbridge as well. The biggest risk is that it will be very sensitive to interest rates, but he doesn’t see them going up for a while. If you Buy keep a close eye on it.