PanCanadian Shareholders Approve Merger
At an annual and special meeting of shareholders in Calgary this afternoon, PanCanadian Energy Corporation shareholders approved the planned merger with Alberta Energy Company Ltd. (AEC) and the renaming of PanCanadian to EnCana Corporation (EnCana). The proposed merger is subject to receipt of court approval.
In excess of 117 million PanCanadian common shares, representing more than 81 percent of the common shares voted, were cast in favor of the proposed combination agreement and issuance of shares to AEC securityholders. In a separate vote, more than 119 million PanCanadian common shares, representing more than 84 percent of the common shares voted, were cast in favor of the name change. A simple majority of voted shares was required for approval of the combination agreement and share issuance by which the merger is to be effected, and a two-thirds majority of voted shares was required for approval of the new name.
The PanCanadian voting results follow a similar outcome at this morning's special meeting of AEC securityholders. At that meeting, 91.4 percent of the shares and options voted were cast in favour of the proposed merger with PanCanadian to create EnCana. This significantly exceeded the two-thirds of the votes needed to approve the merger.
AEC now will seek approval for that part of the merger involving the AEC Plan of Arrangement from the Court of Queen's Bench of Alberta. A hearing has been set for 9:00 a.m., April 5.
"We are very pleased with the results of voting at both meetings," said PanCanadian Chairman and Chief Executive Officer David O'Brien. "From the outset, the market has supported and encouraged this combination because of the value that will be created through it."
AEC President and Chief Executive Officer Gwyn Morgan added, "Today, shareholders of two industry leaders have voted to create one, even more compelling corporation - one of the world's largest independent oil and gas companies. Now we seek approval from the court to proceed."