Texas-based Spectra Energy Corp. plans to take its Calgary-based income trust private through Vancouver's Westcoast Energy.
The assets of Spectra Energy Income Fund (TSX:SP.UN) will be folded into Vancouver-based Westcoast Energy Inc. in a deal worth $273.9 million.
Spectra decided to take the income trust private because federal government changes instituted last year that removed income trust tax benefits.
Spectra said it will buy all the shares of the income trust it doesn't already own for $11.25 per share through Westcoast Energy.
The deal represents a 12% premium over its unit price range a day before the deal was announced.
Spectra Energy Income Fund's unit price range during the past week: between $9.85 and $11.24; 52-week high: $11.90; 52-week low: $8.61.