EnCana Shareholders Vote To Split Company Into 2

November 27, 2009 9:01 a.m. EST

Calgary, Alberta (AHN) - Stockholders of EnCana Corporation voted on Wednesday to split the company into two units, with a 99 percent approval. With the shareholders' decision, two companies would be established.

These are the Cenovus Energy Incorporated, which would be an integrated oil firm, and EnCana Corporation, which would concentrate purely on natural gas. Only a two-thirds majority vote is needed to pass the split of the two energy firms, but almost all shareholders gave their thumbs up to the decision.

On the same day, the Court of Queen's Bench of Alberta approved the split. One of the conditions of the setting up of the two firms is that common stockholders of EnCana will received on new EnCana common stock and another common share of Cenovus for every EnCana common share held on Dec. 7, 2009, the distribution record date.

The shares of the two companies are expected to be traded at the Toronto Stock Exchange beginning Dec. 3, 2009 and at the New York Stock Exchange on Dec. 9, 2009.

EnCana Chief Financial Officer Brian Ferguson was appointed president and chief executive officer of Cenovus, while EnCana President and CEO Randy Eresman kept his post.

Eresman said in a statement, "This is an exciting moment in Encana's evolution as a premier North American energy company. We are extremely pleased with the results and we want to thank shareholders for their overwhelming support for our proposal to divide one outstanding company into two highly focused companies each with an ability to pursue and achieve even greater success."