Shareholders of oil and gas giant Encana Corp. (TSX:ECA) have voted 90% in favour of moving the company’s headquarters to Denver from Calgary, and changing the corporate name to Ovintiv Inc.
Chief Executive Officer Doug Suttles says the 90% vote in favour of the changes shows clear support for the long-standing Canadian company's decision to move its corporate home to the U.S., despite public criticism from Encana founder Gwyn Morgan and major shareholder Letko, Brosseau & Associates Inc.
Encana announced the changes last October as part of a reorganization that includes a one-for-five share consolidation, which has also been approved by shareholders. Mr. Smith said a corporate domicile in the United States will expose it to increasingly larger pools of investment capital in U.S. index funds and passively managed accounts, as well as better align it with its U.S. peers.
The company was created in 2002 through the merger of Alberta Energy Company Ltd., founded in the 1970s by the provincial government, and PanCanadian Energy Corp., the roots of which can be traced to the construction of the Canadian Pacific railroad. At one point it was the largest oil and gas company in all of Canada.
ECA shares dipped a nickel to $5.49 in early Wednesday trading.
