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Husky shareholders will receive 0.7845 of a Cenovus share and 0.0651 of a Cenovus share purchase warrant in exchange for each Husky common share, the statement said.
The merged company is expected to generate annual synergies of $ 1.2 billion and will operate as Cenovus Energy Inc with its headquarters in Alberta, Canada, the release said.
Cenovus CEO Alex Pourbaix will serve as CEO of the merged company with Jeff Hart, currently Husky CFO, becoming CFO.
Cenovus said the combined company would be Canada’s third-largest producer of oil and natural gas with production of 750,000 barrels of oil equivalent per day (BOE / d) of low-cost oil and natural gas.
The transaction was unanimously approved by the boards of directors of Cenovus and Husky and is expected to close in the first quarter of 2021, the companies said.
© Thomson Reuters 2020