Li Ka-shing has not escaped the impact of the epidemic for $7.8 billion to sell the former “cash cow” Husky Energy

   After Husky Energy’s share price plummeted by 70%, its largest shareholder Li Ka-shing could not sit still and agreed to merge Husky Energy with its competitors. Since the acquisition of Husky Energy shares, the Li Ka-shing family’s holdings have evaporated 24.9 billion yuan.

   After Husky Energy’s share price plummeted by 70%, its largest shareholder Li Ka-shing could not sit still and agreed to merge Husky Energy with its competitors. Since the acquisition of Husky Energy shares, the Li Ka-shing family’s holdings have evaporated 24.9 billion yuan.

   On October 25, Husky Energy announced that Canadian oil sands producer Cenovus Energy and Husky Energy have agreed to merge on an all-stock basis. The combined company will be Cenovus Energy Inc. Operating under the name of. The total value of the acquisition is 23.6 billion Canadian dollars.

   After the transaction is completed, Cenovus shareholders will hold 61% of the shares, and Husky shareholders will control the remaining shares. Li Ka-shing’s Hutchison Whampoa will hold 15.7% of the new company.

   Hutchison Whampoa is currently Husky’s largest shareholder, holding 40.2% of Husky’s shares. In addition, Li Ka-shing personally holds 29.3% of Husky Energy’s shares, which translates into approximately 11.5% of the company’s shares after the new merger.

   This means that Li Ka-shing and Husky Energy’s largest shareholder, Changjiang Hutchison, will jointly hold approximately 27% of the shares of the new company.

  According to the Husky financial report, as of June 30, the company’s revenue was 2.38 billion Canadian dollars, lower than 5.24 billion Canadian dollars in the second quarter of 2019, and a net profit loss of 304 million Canadian dollars. The net profit for the same period last year was 370 million Canadian dollars.

   Husky’s stock price plummeted from 10.57 Canadian dollars at the end of the year to the current 3.17 Canadian dollars. During this period, it plummeted 71%. The market value fell from over 10 billion Canadian dollars to 3.2 billion Canadian dollars, evaporating about 7 billion Canadian dollars. This is equivalent to 35.5 billion yuan, which is equivalent to 24.9 billion yuan in the Li Ka-shing family’s holdings.

   Currently, the wave of consolidation sweeping North America’s hard-hit oil and gas industry is accelerating.

   Cenovus said that the combined new company will be worth 23.6 billion Canadian dollars, which will make it the third largest oil and gas producer in Canada with a daily output of 750,000 barrels. The company mainly exploits Alberta. The bituminous oil sands in the north are the largest source of crude oil imports in the United States.

   As North American oil and gas companies seek to integrate and cut costs, this transaction is the latest in a series of North American oil mergers and acquisitions. The largest transaction occurred last week, when ConocoPhillips agreed to acquire Concho Resources for $9.7 billion.

  Source: Wall Street knowledge

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