Canadian Energy Giant Encana Gets Shareholder Authorization To Rebrand, Move To US

Fahad Shabbir (@FahadShabbir) Published January 14, 2020 | 10:49 PM

Canadian energy giant Encana said in a statement on Tuesday that it has received shareholder authorization to rebrand itself under the name Ovintiv and begin the process of moving to the United States

TORONTO (UrduPoint News / Sputnik - 14th January, 2020) Canadian energy giant Encana said in a statement on Tuesday that it has received shareholder authorization to rebrand itself under the name Ovintiv and begin the process of moving to the United States.

"Encana Corporation... today announced that its security-holders voted in support of the reorganization resolution, in order to: (i) establish the company's corporate domicile in the US; (ii) rebrand under the name Ovintiv Inc. ("Ovintiv"); and (iii) complete a consolidation and share exchange for effectively one share of common stock of Ovintiv for every five common shares of Encana," the statement read.

Encana CEO Doug Suttles said he is pleased with the outcome of the vote and the fact that shareholders are backing management's efforts to expose Ovintiv to the "deeper pools of capital in the US - capturing the value we know exists within our equity."

Encana - long considered Canada's economic success story - has become the latest Canadian entity to seek greener pastures in the United States, following a string of major energy projects that have stalled as a result of regulatory red-tape and court challenges from environmental groups.

The exodus of Canadian firms into the United States has been accompanied by billions of Dollars in divestitures by foreign and domestic companies in the western Canadian provinces, particularly Alberta.

Economic hardship in Canada's western provinces - a region that has been the country's economic driver for decades - has led to rising tensions with the Federal government that has even spawned talk of a sovereignty known as "Wexit."

Many Canadians have placed the blame for the region's economic struggles at the feet of the governing Liberals, which saw them swept out of Alberta and Saskatchewan during the federal election in October.