May 17, 2018 / 9:09 AM / 6 days ago

BRIEF-Enbridge Announces Simplification Of Corporate Structure With Proposals To Buy All Of The Outstanding Sponsored Vehicle Equity Securities

May 17 (Reuters) - Enbridge Inc:

* ENBRIDGE ANNOUNCES SIMPLIFICATION OF CORPORATE STRUCTURE WITH PROPOSALS TO ACQUIRE ALL OF THE OUTSTANDING SPONSORED VEHICLE EQUITY SECURITIES

* ENBRIDGE TO BUY-IN SPONSORED VEHICLES IN EXCHANGE FOR ENBRIDGE COMMON SHARES

* FIXED EXCHANGE RATIOS REFLECT AN AGGREGATE VALUE OF CAN$11.4 BILLION, OR 272 MILLION ENBRIDGE COMMON SHARES

* IF COMPLETED, ANTICIPATED TO HAVE NEUTRAL IMPACT ON CO’S THREE-YEAR FINANCIAL GUIDANCE, WITH POTENTIAL FOR POSITIVE IMPACTS BEYOND 2020

* ENBRIDGE - POST-CLOSING ALL SPONSORED VEHICLE EQUITY SECURITYHOLDERS WOULD HOLD SAME PUBLICLY TRADED EQUITY SECURITY IN STREAMLINED CORPORATE VEHICLE

* ROLL-UP RESULTS IN ALL OF CORE LIQUIDS AND GAS PIPELINE ASSETS BEING HELD UNDER ONE EFFECTIVE AND STREAMLINED ENTITY, ENBRIDGE

* UNDER PROPOSAL, SEP UNITHOLDERS WILL RECEIVE 1.0123 COMMON SHARES OF ENBRIDGE PER SEP UNIT, REPRESENTING A VALUE OF US$33.10 PER SEP UNIT

* ENBRIDGE - BELIEVES DEAL MITIGATES SIGNIFICANT RISK SEP FACES IN ITS CURRENT MLP FORM AS IT ADVANCES ITS REGULATORY,RATE CASE STRATEGIES

* ENBRIDGE INCOME FUND’S ABILITY TO COST-EFFECTIVELY RAISE CAPITAL HAS DETERIORATED AND IS NO LONGER A COST-EFFICIENT SPONSORED VEHICLE

* EEP UNITHOLDERS WILL RECEIVE 0.3083 COMMON SHARES OF ENBRIDGE PER EEP UNIT

* EEQ SHAREHOLDERS WILL RECEIVE 0.2887 COMMON SHARES OF ENBRIDGE PER EEQ SHARE

* ENF SHAREHOLDERS WILL RECEIVE 0.7029 COMMON SHARES OF ENBRIDGE PER ENF SHARE

* ENBRIDGE- POST-CLOSING ALL SPONSORED VEHICLE EQUITY SECURITYHOLDERS WOULD HOLD SAME PUBLICLY TRADED EQUITY SECURITY IN A STREAMLINED CORPORATE VEHICLE Source text for Eikon: Further company coverage:

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