Enbridge Inc., one of the largest firms partaking in Canada energy industry share, has recently announced a pair of deals that generated combined receipts of nearly USD 3.2 billion. As per reliable sources, the Calgary based company has sold its natural gas gathering and processing assets in the United States and renewable power facilities in Europe.Reportedly, with the latest deal, Enbridge aims to raise USD 3 billion from non-core asset sales and address concerns about its long-term debt. Moreover, the proceeds garnered from the sale of these assets would be deployed to fund its USD 22 billion expansion plan that would reinforce its stance in the overall energy market, cite sources.
The company plans to shift to a pure regulated pipeline and utility model and the asset sale deal is an important step in that direction, apparently.
Speaking on the stake sale agreement, the Chief Executive Officer of Enbridge, Al Monaco was quoted stating that the monetization of USD 1.75 billion of renewable asset sale, through the recently instituted joint venture with CPPIB, is a remarkable step in setting strategic priorities and realizing the goals enumerated in the three-year plan of the firm.
As per authentic sources, Enbridge has sold 49 percent stake in solar and wind energy assets in Germany and North America for USD 1.75 billion to the Canada Pension Plan Investment Board (CPPIB).
For the record, CPPIB and Enbridge had joined hands to build a joint venture that includes the firm’s Silver State North Solar Project in Nevada, the Cedar Point Wind Farm in Colorado, and all of its Canadian renewable power generation facilities.
In a separate announcement, the company has further declared that it plans to sell its subsidiary, Midcoast Operating LP, to an associate firm of ArcLight Capital Partners LLC in the near future.