Enbridge (TSE: ENB), North America’s largest energy infrastructure company, announced Thursday the closing of the agreement whereby an Enbridge subsidiary sold its 38.9% non-operating minority stake in Noverco Inc. to Trencap LP for C$1.14 billion in cash, previously announced on June 7, 2021.
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Trencap LP is majority owned by Quebec pension fund manager Caisse de depot et placement du Quebec (CDPQ).
Enbridge says the sale of its financial interest in Noverco will further strengthen its financial flexibility. The proceeds from the sale will initially be used to repay short-term borrowings and to support Enbridge’s guaranteed capital program.
Wall Street’s Take
On December 22, Raymond James analyst Michael Shaw initiated coverage of ENB with a C$53 price target. This implies 7.1% upside potential.
Overall, ENB scores a Moderate Buy consensus rating among analysts based on 10 Buys and four Holds. The average Enbridge price target of C$56.01 implies 13.2% upside potential to current levels.
TipRanks’ Smart Score
Enbridge scores a 9 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform the overall market.
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