Enbridge To Sell Interest In Noverco For $1.14 Bln

Enbridge Inc. (ENB,ENB.TO) Monday announced that it has agreed to sell its 38.9% non-operating minority ownership interest in Noverco Inc. to Trencap L.P. for $1.14 billion in cash.

The deal represents a valuation of about 29x reported 2020 GAAP earnings of $39 million.

The deal is expected to close by early 2022. 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. 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.

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