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15h ago

MEG Pushes Cenovus Takeover Vote to Next Week After Late Regulatory Inquiry

The vote was rescheduled to Nov. 6 following a regulator’s request for details on Cenovus’s asset sale to Strathcona that secured the rival’s 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
Strathcona Resources’ Kakwa operation, located in Alberta in the Montney basin, produces natural gas. PHOTO BY STRATHCONA RESOURCES LTD
Cenovus Energy president and CEO Jon McKenzie takes part in a panel discussion during the Global Energy Show in Calgary in June.

Overview

  • MEG adjourned its shareholder meeting after twice recessing the session to address an Alberta Securities Commission inquiry into disclosures about a Cenovus–Strathcona asset transaction.
  • Cenovus agreed to sell its Vawn thermal operation and certain undeveloped lands to Strathcona for up to $150 million, a side deal tied to Strathcona’s pledge to back the Cenovus offer.
  • Cenovus CEO Jon McKenzie said the inquiry stems from a complaint by a former MEG employee holding about 4,000 shares and said he expects no impact on the transaction.
  • MEG reported strong proxy support, with Cenovus citing roughly 86% of shares in favour, as Strathcona prepares to vote its roughly 14% stake for the deal.
  • The cash-and-stock offer values MEG at about C$8.6 billion including assumed debt, would add roughly 110,000 barrels per day to Cenovus’s output, and is expected to close in mid-November pending the vote.