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CALGARY — Encana Corp. has signed a deal to acquire Newfield Exploration Co. in an all-stock offer it said was worth about US$5.5 billion.
Under the deal, Newfield shareholders will receive 2.6719 Encana shares for each share of Newfield common stock.
Encana will also assume US$2.2 billion of Newfield debt.
Newfield shares closed at US$20.20 on the New York Stock Exchange on Wednesday, while Encana shares closed at C$13.44 on the Toronto Stock Exchange.
The deal requires the support of a two-thirds majority vote of Newfield shareholders and a majority vote by Encana shareholders.
Once the deal is completed, Encana shareholders will own approximately 63.5 per cent of the combined company and Newfield shareholders will own about 36.5 per cent.
Two directors from the Newfield board will join the Encana board upon closing.
Encana also says it plans to raise its dividend by 25 per cent and increase its share buyback program to US$1.5 billion.
Read Full Press Release HERE
Companies in this story: (TSX:ECA)
The Canadian Press
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