Husky Power Inc. shareholders have authorized a $3.8-billion all-share takeover bid by rival Cenovus Power Inc., hours earlier than Cenovus shareholders are extensively anticipated to do the identical.
The endorsement by Husky buyers was resounding, with greater than 95 per cent of votes forged in favour of the acquisition.
Frank Sixt, a director of Husky Power, advised a particular shareholder assembly Tuesday he is assured the brand new Calgary-based firm can be extra aggressive, worthwhile and sustainable.
The acquisition comes at a pivotal time in Canada’s power sector because the collapse in oil costs and international pandemic places stress on the oil and gasoline business.
The mixed firm would create the third-largest Canadian oil and pure gasoline producer by complete manufacturing, one which Cenovus CEO Alex Pourbaix says will higher climate power market volatility whereas producing extra cash movement, lowering debt and chopping total prices.
The transaction has been authorized by each boards and is anticipated to shut within the first quarter of 2021, pending each shareholder and regulatory approvals.