Feb. 17 (Bloomberg) -- Enbridge Inc. fell the most in almost three year after disclosing that Noverco Inc., which owns 8.9 percent of the Canadian pipeline company, plans to sell a third of its stake.
Enbridge, the largest transporter of Canadian crude to the U.S., fell 4.1 percent to C$37.58 at the close in Toronto, the biggest decline since Feb. 23, 2009.
Noverco, a holding company that’s 61 percent-owned by Caisse de Depot et Placement du Quebec, Canada’s largest pension fund, plans to sell 22.5 million of its 69.4 million Enbridge shares. Enbridge owns the other 39 percent of Montreal-based Noverco. The selloff will result in $300 million for Enbridge, the Calgary-based company said in a statement.
Noverco is selling the shares to rebalance its asset mix, Enbridge said in the statement. The sale represents 2.9 percent of Enbridge’s outstanding shares, according to data compiled by Bloomberg.
“The placement of these shares will probably be at a market discount, and the possibility of shares hitting the market at a lower price than yesterday has shareholders selling now,” Steven Paget, an analyst with FirstEnergy Capital Corp. in Calgary, said in a telephone interview today.
Net income at Enbridge climbed 2.8 percent to C$335 million ($336.8 million) or 44 cents a share, from C$326 million, or 43 cents, a year earlier, according to the statement. Excluding items such as gains and losses from financial contracts, per-share profit was 37 cents, two cents less than the average of 14 analysts’ estimates compiled by Bloomberg.
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