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Cenovus Energy, Husky Energy To Merge In All-stock Deal

Cenovus Energy, Husky Energy To Merge In All-stock Deal

Cenovus Energy Inc. (CVE, CVE.TO) and Husky Energy Inc. (HSE.TO) consented to converge in an all-stock exchange valued at C$23.6 billion, inclusive of debt.

Cenovus Energy Inc. (CVE, CVE.TO) and Husky Energy Inc. (HSE.TO) consented to converge in an all-stock exchange valued at C$23.6 billion, inclusive of debt.


The combined company will work as Cenovus Energy Inc. also, and remain settled in Calgary, Alberta. The transaction is relied upon to shut in the first quarter of 2021. 


Following the end of the transaction, Cenovus is anticipating the Board's endorsement of a quarterly profit of $0.0175 per share.


According to the conditions of the deal, Husky shareholders will get 0.7845 of a Cenovus share in addition to 0.0651 of a Cenovus share purchase warrant in return for every Husky common share. This speaks to a 21% premium, excluding warrants, comparative with Husky's five-day volume-weighted average price per share as at October 23, 2020.


The aggregate consideration package for Husky investors infers an transaction equity value for Husky of about C$3.8 billion, and an exchange enterprise value for Husky of about C$10.2 billion. 


Alex Pourbaix, Cenovus President and Chief Executive Officer, will fill in as Chief Executive Officer of the consolidated company, Jeff Hart will fill in as Chief Financial Officer, Jon McKenzie will fill in as the Chief Operating Officer and Keith MacPhail will fill in as independent  Board Chair. 


The management team will be supplemented by a Board of Directors consisting of eight directors recognized by Cenovus and four directors identified by Husky. 


Promptly following the end of the transaction, Cenovus shareholders will claim roughly 61% of the joined company, and Husky investors will possess around 39%.



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