Calgary—Global law firm Dentons has advised Canadian energy infrastructure company Enbridge Inc. (TSX, NYSE: ENB) (Enbridge or the Company) on the monetization of a 49 percent interest in select North American onshore renewable power assets, as well as 49 percent of Enbridge's interests in two German offshore wind projects (Hohe See, and related expansion) through a newly created joint venture with the Canada Pension Plan Investment Board (CPPIB) to CPPIB, for approximately CAD$1.75 billion.
The assets being contributed by Enbridge to the joint venture include all of Enbridge's Canadian renewable power assets, held through Enbridge Income Fund, as well as two U.S. assets, namely the Cedar Point Wind Farm in Colorado and the Silver State North Solar Project in Nevada. Enbridge expects to retain its interests in certain other U.S. renewable power assets, which may be monetized or sold at a later date. Under the terms of the agreements, CPPIB will fund its 49 percent pro-rata share of the remaining construction capital required to complete the Hohe See projects (offshore Germany), which are scheduled to come into service at the start of 2020. This additional capital commitment is estimated at approximately CAD$0.5 billion, bringing CPPIB's total commitment to approximately CAD$2.25 billion. Enbridge and its affiliates will continue to manage, operate and provide administrative services for the renewable power assets.
Further, Enbridge and CPPIB have entered into an agreement whereby the two parties will form a 50-50 joint venture for the pursuit of future European offshore wind projects. These projects may be in the early development, late development, construction or operational phase. Each of the North American and German sale agreements is subject to closing adjustments and conditions customary in transactions of this nature. Closing is expected to occur during the third quarter of 2018 subject to the receipt of all necessary regulatory approvals and consents.
Dentons has acted as exclusive legal advisor to Enbridge on the transaction. Calgary based partner Bill Jenkins led Dentons' cross-border team on the deal, which included David Lefebvre, Vivek Bakshi, Courtney Burton, Dan Shea, Barry Zalmanowitz, Sandy Walker, Mark Jadd, Hazel Saffery, Simon Kupi, Keith Bishop, Byron Reynolds, Jamie Thomas, Dan Cerchia, Chetan Shory and Mark Elliott in Canada, Carl Steen, John Harrington and Kerry Ryden in the United States and Thomas Schubert, Daniel Barth, Pawel Hermelinski, Michael Graf, Marcus Seiboth, Frederic Feyten and Gérard Maîtrejean in Europe.
Lead Counsel to Enbridge Inc.
Dentons (Canada): Bill Jenkins (Lead Partner, Corporate and M&A)
Dentons (Berlin): Thomas Schubert (Partner, Corporate and M&A)
Dentons (USA): Carl Steen (Partner, Corporate and M&A)
