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4h ago

Cenovus Raises MEG Bid to C$8.6 Billion in ‘Best and Final’ 50/50 Cash-Stock Offer

The outcome turns on a rescheduled Oct. 22 shareholder vote with a 14% blockholder opposed.

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Cenovus has been named as a potential rival bidder for MEG after Strathcona Resources Ltd. unveiled plans last week to take a $5.93 billion takeover offer to MEG’s shareholders.
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Overview

  • Cenovus lifted its proposed purchase price to about C$29.80 per MEG share and labeled the revised bid its best and final.
  • MEG investors can elect C$29.50 in cash or 1.240 Cenovus shares per MEG share, subject to proration caps of C$3.8 billion in cash and 157.7 million shares for an approximately 50/50 mix.
  • MEG postponed its special meeting to Oct. 22 to give shareholders more time to assess the amended terms.
  • Cenovus and MEG modified a standstill to let Cenovus acquire up to 9.9% of MEG and vote those shares, while rival Strathcona holds about 14% and has said it will vote against.
  • MEG’s board continues to endorse the Cenovus deal, proxy advisers ISS and Glass Lewis have recommended support, and Cenovus projects more than C$400 million in annual synergies by 2028 from combining adjacent assets.