Enbridge to Acquire Gas Distribution Cos. From Dominion for $14 Billion -- Update
05 Septembre 2023 - 11:27PM
Dow Jones News
By Stephen Nakrosis
Enbridge on Tuesday said it agreed to purchase three U.S. based
utilities from Dominion Energy, which will facilitate the creation
of the largest natural gas utility franchise in North America.
The $14 billion deal will see Enbridge acquire the East Ohio Gas
Company, Public Service Company of North Carolina, and Questar Gas
and its related Wexpro companies.
Enbridge said the purchase price comprises a $9.4 billion cash
consideration and $4.6 billion of assumed debt. It said it obtained
debt financing commitments totaling $9.4 billion from Morgan
Stanley and Royal Bank of Canada for the cash consideration
component of the deals. Enbridge also carried out a $4 billion
Canadian dollar ($2.93 billion) bought-deal offering of common
shares on Tuesday, which it said is expected to "fully address the
company's planned discrete common equity issuance needs to finance
this transaction."
According to Enbridge, the deal is expected to be accretive to
distributable cash flow per share and adjusted earnings per share
in the first full year of ownership. Utility cash flows from
acquired businesses will balance Enbridge's earnings mix to about
50% natural gas and renewables and 50% liquids when the deal
closes, which is expected to happen next year.
Dominion said the sale comes amid its ongoing business review,
adding it now expects to conclude the review and announce its
repositioned outlook during the fourth quarter of this year.
Enbridge shares were trading lower in Tuesday's after-hours
market following the news. At 4:50 p.m. ET, the stock had fallen
7.28% to trade at $32.75.
Around the same time, shares of Dominion Energy were down 9.6%,
trading at $46.50.
Write to Stephen Nakrosis at stephen.nakrosis@wsj.com
(END) Dow Jones Newswires
September 05, 2023 17:12 ET (21:12 GMT)
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