Husky Energy Inc. cumulative redeemable preferred T.HSE.PR.B

RE:RE:Vote No to Share Conversion - Reasons Explained

[RagingBull3]

Just sickening... But no surprise to me that someone (most likely knew how you voted or that you voted) would call you up to basically try to get information or try to change your vote.

Anyone that Voted "YES", please let us know if you got a phone call shortly after.   

I could be wrong, that's why I like to see the other side.

All just my opinion.

Good Post Number13, first to give you a thumbs up.     I wanted to remain silent, so your post would remain at top for longer for everyone to see, but hearing this I just had to respond. 

CanSiamCyp wrote: Thanks for an excellent post Number13 - earned a well-deserved "thumbs-up"!

An anecdote to share: On Saturday AM, I received my proxy vote link via email from BMO Nesbitt Burns. I promptly voted no. To my surprise, our landline rang within 30 minutes and somebody calling from Alberta (I didn't bother to catch his name or affiliation) asked me on behalf of HSE whether I had received my proxy form yet. Next question: May I ask how you voted? Next question: May I ask why you voted no? Although I find it bizarre that HSE would follow up with all stockholders via phone, I am certain that he was an authorized agent of HSE cuz he knew how many preferred shares of HSE were held in joint names between my wife and I. He said that he would relay my reasons for voting no back to the company. So it seems that if we do indeed vote no there is a chance that we could stir up some reaction from the company. Cheers!

Number13 wrote: I just want to post again here all the reasons to vote your proxy forms, and to vote NO. I haven't voted with proxy forms often, but it hasn't been too difficult the few times I have. The Proxy voting forms should be arriving soon. They may come electronically or in the mail. (Thanks User CanSiamCyp)

Reasons to Vote No:

1) James Hymas, Canadian preferred shares expert, has advised shareholders to vote no. He thinks they should wait until better terms are offered. His post and additional comments are available here: https://prefblog.com/?p=41503#comments

2) Husky cannot be rolled into Cenovus without purchasing the preferred shares. This has been confirmed by James Hymas, and by User Husky4000. There have been previous court cases where issuers had to redeem preferred shares at $25 after a merger of companies. See the attached court ruling posted by Husky4000: https://canlii.ca/t/g146m

3) If the pref shareholders vote no, Cenovus must maintain Husky as a separate subsidiary. There will not be the proposed savings realized by joining the companies. Issuing debt and buying back the Husky pref shares for $25 is the better economic decision for Cenovus, especially given current interest rate levels. 

4) A similar situation arose during the merger between RONA and Lowe's. Lowe's eventually decided to purchase the outstanding RONA preferred shares for $24, which was agreed to by the shareholders. The article describing this situation is here:  https://financialpost.com/news/fp-street/injustice-for-my-fund-holders-fidelity-explains-its-compromise-decision-to-sell-rona-preferred-shares

5) There is no advantage to voting yes and receiving Cenovus preferred shares. In fact, there may be a credit downgrade of the shares if this happens, as described in the James Hymas post above. 

There are probably more reasons, but that seems to be more than enough for me. Wait for your $25 (or at least a better price than current market value)

Thanks to contributing to the discussion Husky 4000, Rad10, mrbb, CanSiamCyp, and of course RagingBull3 (and others)
 
#13