Encana to sell remaining stake in PrairieSky Royalty for $2.6B
PrairieSky leases its land to develop oil and gas assets.
CALGARY — Encana Corp. has signed a deal to sell its remaining stake in PrairieSky Royalty Ltd. in a secondary offering valued at about $2.6 billion.
The company created PrairieSky earlier this year when it spun off a large portion of its royalty lands into the new public company.
Under the deal with a syndicate of underwriters, it will sell its remaining 54% stake or 70.2 million shares in PrairieSky for $36.50 per share.
PrairieSky makes money by allowing other companies to develop oil and gas on its land in southern and central Alberta.
© 2014 The Canadian Press