Brookfield Infrastructure to acquire Enbridge’s Canadian Midstream business for $4.31B

CPE Media News – pcJournal (7/4/2018) – Enbridge Inc. (TSX/NYSE: ENB) has agreed to sell its Canadian natural gas gathering and processing business in the Montney, Peace River Arch, Horn River and Liard basins in British Columbia (B.C.) and Alberta to Brookfield Infrastructure (NYSE: BIP; TSX: BIP.UN) and its institutional partners for a cash purchase price of CDN $4.31 billion or US $3.3 billion, subject to customary closing adjustments and receipt of regulatory approvals.

The gas gathering and processing business includes 19 natural gas processing plants and liquids handling facilities, with a total operating capacity of 3.3 Bcf/d and 3,550 km of natural gas gathering pipelines with connectivity to major demand markets including the U.S. Pacific Northwest, U.S. Midwest and Western Canada.

RBC Capital Markets acted as financial advisor and Torys LLP acted as legal advisors to Enbridge on the transaction.

Brookfield Infrastructure’s equity commitment towards this investment will be approximately $500 million, representing an approximate 30% interest in the business.

photo credit: Enbridge

News Release

Brookfield Infrastructure to Acquire Western Canadian Midstream Business

BROOKFIELD, NEWS, July 04, 2018 — Brookfield Infrastructure (NYSE:BIP) (TSX:BIP.UN) and its institutional partners (collectively, “Brookfield”), today announced that it has entered into a definitive agreement to acquire 100% of Enbridge Inc.’s Western Canadian natural gas gathering and processing business (the “Canadian Midstream Business”) for an enterprise value of C$4.31 billion (approximately US$3.3 billion) subject to customary closing adjustments.

Brookfield Infrastructure’s equity commitment towards this investment will be approximately $500 million, representing an approximate 30% interest in the business. Brookfield Infrastructure will fund its share of the transaction with its significant available liquidity comprised of, among other things, proceeds from the sale of its interest in Transelec, which closed in March 2018.

“This investment represents an exciting opportunity to invest in scale in one of North America’s leading gas gathering and processing businesses based in Western Canada. The business is strategically positioned for the continued development of the prolific Montney Basin,” said Sam Pollock, CEO of Brookfield Infrastructure. “Cash flows from the business are anchored by a firm contract profile with a weighted average life of 10 years.”

The Canadian Midstream Business includes 19 natural gas processing facilities with total operating processing capacity of 3.3 Bcf/d and 3,550 kilometers of gathering pipelines, with connectivity to major demand markets including the U.S. Pacific Northwest, U.S. Midwest and Western Canada.

Closing of the transaction remains subject to a number of customary conditions, including certain regulatory approvals. The transaction is expected to close in two phases, with the facilities subject to provincial regulation expected to achieve financial close in 2018 and closing of those subject to federal regulation anticipated in mid-2019.

Brookfield Infrastructure Partners is a leading global infrastructure company that owns and operates high quality, long-life assets in the utilities, transport, energy and communications infrastructure sectors across North and South America, Asia Pacific and Europe. We are focused on assets that generate stable cash flows and require minimal maintenance capital expenditures. Brookfield Infrastructure Partners is listed on the New York and Toronto stock exchanges. Further information is available at www.brookfieldinfrastructure.com.

Brookfield Infrastructure is the flagship listed infrastructure company of Brookfield Asset Management, a leading global alternative asset manager with approximately $285 billion of assets under management. For more information, go to www.brookfield.com

For more information, please visit our website at www.brookfieldinfrastructure.com or contact:

Media:
Claire Holland
Vice President, Communications
Tel: (416) 369-8236
Email: claire.holland@brookfield.com

Investors:
Rene Lubianski
Senior Vice President, Corporate Development
Tel: (416) 956-5196
Email: rene.lubianski@brookfield.com


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