Overview

• MEG shareholders are offered C$27.25 per share, paid 75% in cash and 25% in Cenovus stock, with elections subject to caps of C$5.2 billion in cash and about 84.3 million shares.
• On a fully pro-rated basis, the consideration equals roughly C$20.44 in cash and 0.33125 of a Cenovus share per MEG share.
• The combination consolidates adjacent SAGD operations at Christina Lake, creating a producer managing more than 720,000 barrels per day.
• Cenovus projects about C$150 million in annual synergies initially, rising to more than C$400 million by 2028, and has arranged a C$2.7 billion term loan plus a C$2.5 billion bridge facility underwritten by CIBC and JPMorgan.
• The deal has unanimous board approvals and awaits a two‑thirds MEG shareholder vote in October and regulatory clearances, while Strathcona keeps its hostile bid open until Sept. 15 and signals it may vote against the Cenovus agreement.