We have compiled a list of questions and answers about the 2-for-1 stock split of Enbridge common shares that was approved by shareholders on May 11, 2011. If you have a question that hasn't been answered here or require more information about the split, please contact email@example.com.
Enbridge common shares commenced trading on the TSX on a split basis at the opening of business on Friday, May 20, 2011, which was the second trading day preceding the record date.
Enbridge common shares began trading 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 was May 25, 2011. Holders of record on May 25, 2011, received one additional common share for each common share they held.
The split doubled 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 was payable on a pre-split quarterly basis ($0.49) Cdn.
Future dividends were reflected on a post-split basis. The annual dividend pre-split in 2011 was $1.96. Subsequent to the stock split, the annual dividend was one-half or approximately $0.98 each, but shareholders held twice the amount of shares.
Certificates representing shares held prior to the split continue to be valid and should be retained. Additional certificates for the additional shares allocated as a result of the split were mailed in 2011. The combination of the old stock certificates and the new stock certificates represent each shareholder’s total post-split shareholdings.
You would have received 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 would have not have received a share certificate. Should you wish to request a replacement certificate, please contact AST Trust Company (Canada).
Management believed the split would keep the trading range of ENB shares better aligned with Enbridge peers in the energy infrastructure business, make Enbridge stock more accessible to retail shareholders and enhance liquidity for investors.
The stock split had no unfavorable tax consequences in Canada or the United States, and did not dilute shareholders’ equity. However, the adjusted cost base of individual shares must be recalculated to reflect the split.
Accounts were automatically updated and an updated balance was reflecting on the statement following the split. No action was required on the part of the shareholder.
The last stock split occurred in May 2011 as a 2:1 split at a pre-split share price of $61.41. Prior to this, a 2:1 split occurred in May 2005 at which time the share price was $64.02.