Overview

• Cenovus released a presentation arguing its cash-and-stock offer provides premium value and certainty versus Strathcona’s all-share bid.
• The offer is 72% cash and 28% Cenovus shares with an implied value of $28.44 per MEG share, a 39% premium to mid-May trading, according to Cenovus.
• Strathcona’s revised hostile proposal offers 0.80 Strathcona share per MEG share and was valued at $30.86 when announced, which Cenovus characterizes as risky due to share volatility.
• MEG’s board unanimously recommends the Cenovus transaction and has called Strathcona’s proposal fundamentally unattractive.
• Strathcona holds about 14.2% of MEG and plans to vote against the Cenovus deal, which requires two-thirds approval, as both sides cite Christina Lake asset synergies in their pitches.