Photo: SeaRose FPSO; Source: Husky Energy

Shareholders approve Husky-Cenovus merger

Shareholders from Cenovus Energy and Husky Energy have voted to support the previously announced plan to combine the two companies into an integrated energy player.

Husky and Cenovus announced their merger plans on 25 October 2020.

The combination of these two companies will create the third-largest Canadian oil and gas player.

On 15 December, Cenovus and Husky held separate special shareholder meetings via live webcast.

Each company’s security holders, respectively, voted on resolutions in connection with the proposed business combination.

At the Cenovus special meeting, the resolution authorizing the issuance of Cenovus common shares and warrants to Husky common shareholders under the plan of arrangement was approved by 93.31 per cent of the votes cast.

At the Husky special meeting, the resolution approving the plan of arrangement was approved by 99.94 per cent of the votes cast by common shareholders and 99.92 per cent of the votes cast by common shareholders and option holders, voting together as a single class.

In addition, the resolution approving the exchange of Husky preferred shares for Cenovus preferred shares was approved by 97.85 per cent of the votes cast by Husky preferred shareholders, voting together as a single class.

The completion of the combination remains subject to the approval of the Court of Queen’s Bench of Alberta and the receipt of all necessary regulatory approvals.

As previously reported, once the deal has been completed, Cenovus Energy will be cutting between 20 and 25 per cent of its workforce in a push to reduce costs.