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

What's this 10% by Cenovus????

[RagingBull3]

"The Arrangement is not conditional on Husky Preferred Shareholder approval. However, the exchange of Husky Preferred Shares for Cenovus Preferred Shares under the Arrangement is subject to (1) approval of not less than 66% of the votes cast by Husky Preferred Shareholders' voting together as a single class at the Husky Meeting; and (2) unless otherwise determined by Cenovus in its sole discretion, holders of not more than 10% of the Husky Preferred Shares having validly exercised, and not withdrawn, dissent rights (collectively, the “Preferred Share Condition”). If the Preferred Share Condition is not satisfied prior to the effective time of the Arrangement, the Husky Preferred Shares will not be acquired by Cenovus pursuant to the Plan of Arrangement, will remain outstanding in a subsidiary of Cenovus following Closing, and will remain listed for trading on the TSX. If issued, the Cenovus Preferred Shares are expected to be listed on the TSX."

As I understand, about 49% of the Preferreds voted.   Of those that voted, about 97.8% vote for the arrangement.    So, there's over 50% that did not vote.   Did they Dissent? 

So, what's the situation for the Preferred Shares?   They will become Cenovus Preferreds or not?

[RagingBull3]

Anyone Good at English?.... and can dumb it down for me.... and explain the situation for the Preferreds?    I assume they become Cenovus Preferreds but then I see this "10%", so I don't really know.

[Husky4000]

It means if 10% of preferreds go to court...Cenovus can decide to not convert ALL of the preferreds.  

[Husky4000]

exercising dissent rights is not just voting 'no'.  This is a whole legal procedure.  

[RagingBull3]

Thanks Husky4000.  In your opinion, what do you think will happen to the Preferreds?  It's my understanding that over 50% of the Preferreds did not vote.     Did they Dissent?  Are they going to Court?   or are they sleeping and don't have a clue what's going on?  or something else. Of those Preferreds that voted, I think ~97% voted "

[Husky4000]

Well usually in law you have delays to do things...I'd need to check the law to know how much time AFTER the vote they have to exercice dissent rights.  I guess it's something like 30 days

[RagingBull3]

"To exercise such right to dissent, a dissenting Husky Common Shareholder or a dissenting Husky Preferred Shareholder must send to Husky, c/o Osler, Hoskin & Harcourt LLP, Suite 2500, TC Energy Tower, 450 – 1st Street S.W., Calgary, Alberta, T2P 5H1, Attention: Tristram Mallett, a written objection to the Arrangement Resolution or Preferred Shareholder Resolution, as the case may be

[Husky4000]

That would be section 191 of the law https://www.qp.alberta.ca/1266.cfm?page=B09.cfm&leg_type=Acts&display=html

[RagingBull3]

ok, forget for a moment referencing all the legal stuff..... What does your gut say?  

[Husky4000]

I think that maybe around 10% have exercised dissent rights and that CVE will buy them out at around 22-23$ (they don't have the cash to redeem a higher percentage, that's why the second condition is written that way)....and then the conversion will go through for the remaining.  But this is just a personal guess

[RagingBull3]

Ok, thanks.  

[Number13]

Where did the info on the voting numbers come from? I can't find anything #13

[CanSiamCyp]

This post has been removed in accordance with Community Policy

[RagingBull3]

Just from listening at the virtural meeting..... the numbers ~49% and ~97%