News Spotlight: Encana Corporation (NYSE:ECA)

Encana Corporation (NYSE:ECA) stock identified change of 11.48% away from 52-week low price and recently located move of -67.89% off 52-week high price. It has market worth of $5965.27M and dividend yield of 1.60%. ECA stock has been recorded -3.91% away from 50 day moving average and -28.23% away from 200 day moving average. Moving closer, we can see that shares have been trading 1.89% off 20-day moving average.

Encana Corporation (NYSE:ECA) announced the final results of its substantial issuer bid (the “Offer”) under which it has accepted to purchase for cancellation 47,333,333 of its common shares (“Shares”) at a purchase price of US$4.50 per Share, for an aggregate purchase price of approximately US$213 million. Shares purchased under the Offer represent approximately 3.5% of the issued and outstanding Shares at the time that the Offer was commenced.

Based on the final count by AST Trust Company (Canada), the depositary for the Offer, a total of 127,957,593 Shares were properly tendered and not properly withdrawn. As the Offer was oversubscribed, shareholders who made auction tenders at a price of US$4.50 or less per Share and purchase price tenders will have approximately 70.69% of their successfully tendered Shares purchased by Encana (other than “odd lot” holders, whose Shares will be purchased on a priority basis). Shareholders who made auction tenders at a price in excess of US$4.50 per Share will have their Shares returned by the depositary for the Offer. Payment for the Shares accepted for purchase under the Offer will occur in accordance with the terms of the Offer and applicable law.

To assist shareholders in determining the tax consequences of the Offer, Encana estimates that for the purposes of the Income Tax Act (Canada), the paid-up capital per Share is approximately C$8.39 (or US$6.31, based on the Bank of Canada daily average foreign exchange rate as at the expiry of the Offer). Given that the estimated paid-up capital per Share amount exceeds the purchase price of US$4.50 per Share, shareholders who have sold Shares to Encana pursuant to the Offer will not be deemed to have received a taxable dividend as a result of such sale.

The “specified amount” for purposes of subsection 191(4) of the Income Tax Act (Canada) is US$4.45 (or C$5.92, based on the Bank of Canada daily average foreign exchange rate as at the expiry of the Offer).

 The Basic Materials sector company, Encana Corporation noticed change of -1.58% to $4.37 along volume of 20776363 shares in recent session compared to an average volume of 24436K. The stock observed return of 3.31% in 5 days trading activity. The stock was at -0.68% over one month performance. ECA’s shares are at -18.62% for the quarter and driving a -67.41% return over the course of the past year and is now at -24.39% since this point in 2018.  The average volatility for the week at 3.26% and for month was at 4.79%. There are 1365.05M shares outstanding and 1238.09M shares are floated in market. Right now the stock beta is 1.97.

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