Encana Corp. received shareholder approval to relocate its headquarters to the U.S., marking its exit from Canada.
Encana, currently based in Calgary, Alberta, unveiled plans to establish a corporate domicile in the U.S. last October. The company’s plans include also changing its name to Ovintiv Inc.
Following the move, Encana will continue to be traded on both the Toronto and New York stock exchanges under the ticker symbol ‘OVV’.
Investor Letko, Brosseau & Associates Inc., which owns about 4% stake in Encana, had said in November it would vote against the company’s proposed exit from Canada, saying the move would cause significant losses for Canadian shareholders, according to a report by Reuters.
Encana is a North American oil and gas producer with roots dating back to the late 1800s, according to the company website.
Once among Canada’s largest oil and gas companies, Encana has been shifting its focus in recent years to the U.S. The company expanded its position in the U.S. significantly last year after closing on its multibillion-dollar acquisition of Texas-based Newfield Exploration.
The Lundin Petroleum board also proposed to change the company's name to Lundin Energy AB, it said in a statement.
The increase in oil and gas bankruptcies seems likely to continue, said Buddy Clark, partner at Haynes and Boone.
Shares of Encana will be suspended from trading on the New York and Toronto stock exchanges on Jan. 27 at which time the company will begin trading as Ovintiv under the “OVV” symbol.