Encana to sell remaining stake in PrairieSky for $2.6B
Company created PrairieSky earlier this year; will sell remaining 54 per cent stake for $36.50 per share
CALGARY—Encana Corp. has signed a deal to sell its remaining stake in PrairieSky Royalty Ltd. in a secondary offering valued at about $2.6 billion.
The company created PrairieSky earlier this year when it spun off a large portion of its royalty lands into the new public company.
Encana said that under the deal with a syndicate of underwriters it will sell its remaining 54 per cent stake—or 70.2 million shares—in PrairieSky for $36.50 per share.
PrairieSky makes money by allowing other companies to develop oil and gas on its land in southern and central Alberta.
When Encana launched PrairieSky’s initial public offering earlier this year it sold some 59.8 million shares to a syndicate of underwriters at $28 per share.
PrairieSky shares were down 62 cents at $38.09 in trading on the Toronto Stock Exchange (TSX) Sept. 8, while Encana shares closed up 11 cents at $24.70.