Encana Corporation (NYSE, TSX: ECA) issued a statement in strong disagreement to Letko’s news release earlier today titled: “Letko Brosseau Will Vote Against Encana’s Proposed Exit from Canada.”

“We were disappointed by Letko’s release earlier today stating its opposition to our recent decision to establish Encana’s corporate domicile in the United States,” said Encana’s CEO Doug Suttles. “We have had a long relationship with Letko and most certainly appreciate their investment in our Company.

“Our establishment of domicile in the U.S. was carefully considered by our leadership, Board of Directors and outside advisors. The rationale for the move is crystal clear—we want to expose our Company and all its stockholders to increasingly larger pools of investment in U.S. index funds and passively managed accounts. The change in corporate domicile will not change how we run our day-to-day business, nor diminish the important role our Canadian assets play in our portfolio today. We do not believe that our Canadian investors will be forced to sell beyond the Canadian indices, and we will remain listed on both the TSX and the NYSE.

Furthermore, we know that most of our large investors in Canada also own many of our U.S.-domiciled peers today. We deeply believe this move ultimately will be positive for ALL shareholders as exposure to the significantly larger U.S. market and funds is estimated to create more than $1 billion of additional demand for our shares. As we said at the time of the original announcement in late October, ‘our actions show that we will leave no stone unturned to capture the value we deeply believe exists within our equity’.”

Source / Further information : Encana


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