Canada-based upstream Encana sold its renaming 54 percent stake in Calgary-based PrairieSky for $2.37 billion on Monday to a group of underwriters led by Canadian investment bank TD Securities.
The group of underwriters will buy 70.2 million shares for $33.15 per share, 4.2 percent lower than PrairieSky’s closing price on the Toronto Stock Exchange Monday.
PrairieSky is a land ownership structure that holds 6.3 million acres of fee simple mineral titles in western Canada. PrairieSky collects royalties from oil companies operating on its properties.
In May, Encana sold off a 46 percent stake in PrarieSky with an IPO that raised $1.52 billion.
“We didn’t intend to be long-term shareholders,” an Encana spokesman told Reuters.
Encana has been selling off assets in an effort to boost its oil production funds. The company has been moving away from natural gas projects and refocusing on oil and liquid natural gas.
The deal is expected to close on or around September 26, 2014 and is still subject to regulatory approvals.