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4h ago

MEG Shareholders Approve Cenovus’s C$8.6 Billion Takeover After Weeks of Delays

The approval paves the way for closing, subject to remaining regulatory reviews.

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
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Overview

  • Roughly 86% of votes supported the deal, surpassing the two‑thirds threshold required for approval, MEG chair James McFarland said.
  • The offer values MEG at about C$8.6 billion, or roughly C$30 per share, with an approximately 50/50 cash‑and‑stock election structure subject to proration caps.
  • The special meeting followed multiple postponements tied to a regulatory inquiry triggered by a former MEG employee’s complaint and to added disclosures after a Strathcona asset sale agreement with Cenovus.
  • Strathcona ended its hostile bid in late October and committed its roughly 14% MEG stake to back the Cenovus proposal.
  • Cenovus cites adjacent Christina Lake assets for operational efficiencies and says the acquisition would add about 110,000 barrels a day, lifting output to roughly 720,000 boe/d.