Renaissance shareholders approve Husky Oil takeover bid
Shareholders of Calgary-based Renaissance Energy Ltd. today approved a $4.42 billion (Can.) takeover bid by Husky Oil Ltd., Calgary. The friendly takeover bid, announced June 19, will create the second largest Canadian integrated oil company.
CALGARY�Shareholders of Calgary-based Renaissance Energy Ltd. today approved a $4.42 billion (Can.) takeover bid by Husky Oil Ltd., Calgary. The friendly takeover bid, announced June 19, will create the second largest Canadian integrated oil company.
Regulatory authorities still must approve the transaction.
The merged company will be known as Husky Energy and will be headed by Husky CEO John Lau.
The company will have extensive oil and gas interests, including heavy oil and conventional resources in western Canada, a network of retail stations, and exploration acreage off Canada�s East Coast. The merged company will have annual production of about 252,000 boe/d and proven and probable reserves of more than 1.43 billion boe.
Based on annualized first quarter 2000 results, Husky Energy would generate revenues in excess of $5 billion (Can.), earnings of more than $485 million, and cash flow of about $1.55 billion in 2000. Husky said it expects to report increased production in 2001 from its interest in the Terra Nova oilfield off Newfoundland, which is scheduled to start production next year, and growth in other properties.
Lau said Husky will be well-positioned to realize full profit potential of high growth opportunities in heavy oil, oil sands, and the East Coast offshore area. The company also expects to expand international projects, including in Asia.
Husky is controlled by Hong Kong billionaire Li Ka-shing and his family through their own holdings and through their trading company, Hutchison Whampoa Ltd. of Hong Kong.
Renaissance was one of the stars of the Canadian oil patch, rising to be a major independent as a result of aggressive drilling programs. It gradually lost investor support and the stock fell from a high of $51 per share in 1996 to $10.20 in March. It was selling at $16 at close of trade last week.