Encana to sell remaining stake in PrairieSky Royalty for $2.6 billion

CALGARY – Encana Corp. (TSX:ECA) has signed a deal to sell its remaining stake in PrairieSky Royalty Ltd. (TSX:PSK) in a secondary offering valued at about $2.6 billion.

The company created PrairieSky earlier this year when it spun off a large portion of its royalty lands into the new public company.

Encana said Monday that under the deal with a syndicate of underwriters it will sell its remaining 54 per cent stake or 70.2 million shares in PrairieSky for $36.50 per share.

PrairieSky makes money by allowing other companies to develop oil and gas on its land in southern and central Alberta.

When Encana launched PrairieSky’s initial public offering earlier this year it sold some 59.8 million shares to a syndicate of underwriters at $28 per share.

PrairieSky shares were down 62 cents at $38.09 in trading Monday on the Toronto Stock Exchange, while Encana shares closed up 11 cents at $24.70.