Enbridge common shares will commence trading on the TSX on a split basis at the opening of business on Friday, May 20, 2011, which is the second trading day preceding the record date.

    

Enbridge common shares will trade on the New York Stock Exchange on a divided basis at the opening of business on Wednesday, June 1, 2011, after the May 31, 2011 delivery of share certificates to registered holders of Enbridge common shares.

The record date is May 25, 2011.  Holders of record on May 25, 2011, will receive one additional common share for each common share they hold.

The split will double the number of shares outstanding from approximately 387 million shares to approximately 774 million shares.

As the record date (May 13, 2011) for the June 1, 2011 dividend precedes the record date (May 25, 2011) for the stock split, the dividend will be payable on a pre-split basis ($0.49) Cdn.

Yes, future dividends will be reflected on a post-split basis (assuming $0.49 Cdn cent dividend, subsequent dividends would be one-half or approx. $0.25 Cdn. cents each, although shareholders will have twice the amount of shares).

Non-registered owners of Enbridge Common Shares do not need to take action as appropriate account adjustments will be processed by their investment dealer or broker.

 

Registered owners of record on May 25 will receive certificates for the additional shares to which they are entitled as a result of the split. Certificates representing shares held prior to the split continue to be valid and should be retained by registered owners. Additional certificates will be mailed beginning May 31, 2011. The combination of the old stock certificates and the new stock certificates will represent each shareholder’s total post-split shareholdings.

 

 

It is recommended beneficial shareholders check with their respective brokers regarding the handling of ENB fractional shares. For registered shareholders with CIBC Mellon, the transfer agent, fractional shares will be doubled and will be reflected in account adjustments.

You will still receive a new share certificate reflecting the stock split, even if you have lost your old certificate.  If your shares are held in a brokerage account, you will not have or receive a share certificate.  Should you wish to request a replacement certificate, please contact CIBC Mellon at www.cibcmellon.com/investorinquiry.

 

Management believes the split will keep the trading range of ENB shares better aligned with Enbridge peers in the energy infrastructure business.  It would also make Enbridge stock more accessible to retail shareholders and should enhance liquidity for our investors.

The stock dividend should have no unfavorable tax consequences in Canada or the United States, and will not dilute shareholders’ equity.

Accounts will automatically be updated. No action is required on the part of the shareholder. An updated balance will be reflected on the next statement.

The last stock split occurred in May, 2005, and was a 2:1 split.  Enbridge Inc. share price was $64.02 prior to that split.