Letko Brosseau Reiterates it Will Vote Against Encana’s Proposed Exit From Canada
MONTREAL, Nov. 28, 2019 /PRNewswire/ - Letko, Brosseau & Associates Inc. (“Letko Brosseau”), which exercises control or direction over approximately 4.0% of the outstanding shares of Encana Corporation (“Encana” or the “Company”), reiterates it will vote against Encana’s proposed exit from Canada to the U.S.
We object to the proposed Encana transaction for the following reasons:
In the end, the Company’s shares have underperformed as a result of strategic decisions, such as last year’s Newfield acquisition – not due to the makeup of its investor base. This proposal confuses that reality, diverting attention away from the more pressing issue of ensuring that good corporate governance leads to enhanced shareholder value.
As a result of the above arguments we strongly oppose the proposal to change the situs of incorporation to the United States seeing no benefit in doing so while forcing Canadian holders to sell their shares at a loss. We see this proposal as bad corporate governance.
Letko Brosseau is a Canadian independent investment manager founded in 1987. The firm manages approximately $27 billion in assets for institutional investors and private clients.
Where the information contained in this press release has been obtained or derived from third-party sources, the information is from sources believed to be reliable, but the firm has not independently verified such information. No representation or warranty is provided in relation to the accuracy, correctness, completeness or reliability of such information. Any opinions or estimates contained herein constitute our judgment as of this date and are subject to change without notice.
Certain information contained in this press release may constitute forward-looking statements. Forward-looking statements may include estimates, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although Letko Brosseau believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. These statements are subject to certain risks and uncertainties and may be based on assumptions that could cause actual results to differ materially from those anticipated or implied in the forward-looking statements. Letko Brosseau’s forward-looking statements are expressly qualified in their entirety by this cautionary statement. The forward-looking statements contained in this press release are made as of the date hereof and Letko Brosseau does not assume any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise unless expressly required by applicable securities laws.
SOURCE Letko, Brosseau & Associates Inc.