The Globe and Mail reports in its Friday, Feb. 16, edition that unnamed sources say Enbridge plans to expedite its divestment program by selling assets valued at about $8-billion in 2018, more than twice its initial sale target.
A Reuters dispatch to The Globe reports that under pressure from both investors and rating agencies, sources say Enbridge wants to increase the sale of non-core assets from the previous $3-billion it forecast in November.
Sources say Enbridge is trying to take advantage of favourable selling conditions to rid itself of unwanted units and pay down its $61.4-billion long-term debt. Enbridge last year completed a $28-billion merger with Spectra Energy.
Shares in Enbridge have lost 23 per cent in the past 52 weeks, underperforming the broader market. Earlier this month, the stock hit its lowest in nearly two years.
As part of a strategic review announced in November, Enbridge said it has identified $10-billion in non-core assets that it could sell over time.
Enbridge is working with an investment bank to sell Canadian and U.S. renewable energy assets worth more than $2-billion, sources say. It is also looking to offload Canadian mid-stream assets that could fetch as much as $4-billion.
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