CVE - Cenovus to buy Husky Energy in $2.9B stock deal

Cenovus Energy (CVE) agrees to acquire Husky Energy (HUSKF) in an all-stock transaction, creating an integrated Canadian oil and natural gas company that's expected to boost free funds flow generation.Combined company will have about 750K boe/d production, making it the third-largest Canadian oil and natural gas producer. It will be the second-largest Canadian-based refiner and upgrader with total North American upgrading and refining capacity of ~660K boe/d.The aggregate consideration for Husky shareholders implies a transaction equity value for Husky of ~C$3.8B (US$2.9B) and a transaction enterprise value for Husky of ~C$10.2B.Husky shareholders to get 0.7845 of a Cenovus share plus 0.0651 of a Cenovus share purchase warrant in exchange for each Husky common share; represents a 21% premium, excluding warrants, relative to Husky’s five-day volume-weighted average price per share as at Oct. 23, 2020.Expects to generate incremental C$1.2B of annual free funds flow, comprised of C$600M in annual corporate and operating

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Cenovus to buy Husky Energy in $2.9B stock deal