trending Market Intelligence /marketintelligence/en/news-insights/trending/n6fAatsP3K9OVZ64EcSfFg2 content esgSubNav
In This List

Encana posts early results of share buyback offer totaling US$213M

Podcast

Next in Tech | Episode 49: Carbon reduction in cloud

Blog

Using ESG Analysis to Support a Sustainable Future

Research

US utility commissioners: Who they are and how they impact regulation

Blog

Q&A: Datacenters: Energy Hogs or Sustainability Helpers?


Encana posts early results of share buyback offer totaling US$213M

Encana Corp. expects to take up and purchase for cancellation 47,333,333 shares at US$4.50 apiece, for a total price of about US$213 million, matching the oil and gas company's intended maximum amount for the deal.

A total of 127,043,382 Encana shares were properly tendered and not properly withdrawn as of the expiration date of Aug. 28, based on the preliminary results of the substantial issuer bid. The total includes 1,573,848 shares tendered through notice of guaranteed delivery, according to an Aug. 29 news release.

The 47,333,333 shares to be purchased represent about 3.5% of the issued and outstanding shares when the offer commenced in July.

Due to the oversubscription, shareholders who made auction tenders at US$4.50 per share or less and purchase price tenders will have about 70.95% of their successfully tendered shares acquired by Encana. Those who made auction tenders at more than US$4.50 apiece will not have any of their shares bought by Encana.

Calgary, Alberta-based Encana — which owns assets in shale plays, including the Montney and Duvernay shales in British Columbia and Alberta — earlier trimmed the price range of the offer to US$4.15 per share to US$4.75 per share, citing a drop in the market price of the shares. The previous band was US$4.70 per share to US$5.40 per share.

BMO Nesbitt Burns Inc. and BMO Capital Markets Corp. were financial advisers and dealer managers, and AST Trust Co. (Canada) was the depositary for the offer.