Pembina Pipeline Completes Enbridge Interest Acquisition, Boosts 2024 Guidance
(P&GJ) — Pembina Pipeline Corp. has finalized its acquisition of Enbridge’s interest in the Alliance, Aux Sable, and NRGreen joint ventures.
Scott Burrows, Pembina’s president and CEO, expressed enthusiasm about the acquisition, highlighting its alignment with Pembina’s strategic goals. He emphasized the company's intent to integrate these newly acquired assets swiftly and capitalize on identified synergies.
RELATED: Pembina Pipeline Acquires Enbridge's Interests in Alliance Pipeline, Aux Sable for $3.1 Billion
The acquisition, valued at approximately $3.1 billion, was partly funded through the net proceeds of Pembina's $1.28 billion bought deal offering of subscription receipts, which concluded on December 19, 2023. As a result of the transaction's closing, holders of Subscription Receipts will automatically receive one common share of Pembina.
Pembina made a cash payment, termed a "Dividend Equivalent Payment," to holders of Subscription Receipts on March 28, 2024, equal to the dividend per Common Share paid on that date to holders of Common Shares.
Trading in the Subscription Receipts ceased, the transfer register maintained by the subscription receipt agent closed, and the Subscription Receipts were delisted from the Toronto Stock Exchange (the TSX) effective at the close of trading.
The Common Shares issued pursuant to the terms of the Subscription Receipts are set to commence trading on the TSX and the New York Stock Exchange.
With the completion of the Transaction, Pembina has revised its 2024 adjusted EBITDA guidance range to $4.05 billion to $4.30 billion, up from the previous range of $3.725 billion to $4.025 billion. This adjustment primarily reflects the increased ownership of Alliance and Aux Sable, alongside a stronger outlook in the marketing business.
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