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21h ago

MEG Postpones Cenovus Takeover Vote to Nov. 6 After Regulator Query

Regulators sought more detail on a side asset sale to Strathcona tied to voting support.

Andy Cepuch, senior field manager, at the plant—where steam is created, water is processed, and bitumen is diluted and prepared to go for further processing—at the Cenovus Christina Lake oilsands facility southeast of Fort McMurray, Alta., on Wednesday April, 24, 2024. THE CANADIAN PRESS/Amber Bracken
The Cenovus Christina Lake oilsands facility steam-assisted gravity drainage pad southeast of Fort McMurray, Alta., is shown on Wednesday, April 24, 2024. THE CANADIAN PRESS/Amber Bracken

Overview

  • MEG adjourned the shareholder meeting by one week to provide added disclosure on Cenovus’s sale of the Vawn thermal asset and undeveloped lands to Strathcona for up to $150 million, including $75 million at closing.
  • Cenovus CEO Jon McKenzie said the inquiry stems from a complaint by a former MEG employee holding about 4,000 shares and he does not expect it to affect the transaction.
  • Roughly 86% of MEG shares have backed the deal by proxy or signalled support, exceeding the two‑thirds threshold required for approval.
  • Strathcona, which owns about 14% of MEG, has pledged to vote for Cenovus after reaching the asset purchase agreement with Cenovus.
  • The cash‑and‑stock deal is valued at about C$8.6 billion including assumed debt, would add roughly 110,000 barrels per day to Cenovus’s oilsands output at Christina Lake, and is targeted to close by mid‑November if approved.