Particle.news
Download on the App Store
4 ARTICLES
·
last mo.

Strathcona Lifts Hostile MEG Bid to C$30.86 a Share, Topping Cenovus

MEG’s board still backs Cenovus’s mostly‑cash deal, leaving shareholders to decide at an Oct. 9 vote.

Image
The MEG Energy Corp. logo is seen in this undated handout photo. MEG Energy Corp. is promoting Darlene Gates to the role of chief executive.THE CANADIAN PRESS/HO, MEG Energy *MANDATORY CREDIT*

Overview

  • Strathcona’s revised all‑share offer is 0.80 of a Strathcona share per MEG share, valuing MEG at about C$30.86 per share and running until Oct. 20.
  • The bidder says the terms reflect an 11% premium to the current value of MEG’s agreement with Cenovus and a 10% increase over Strathcona’s initial proposal, based on Sept. 5 averages.
  • Strathcona plans a fourth‑quarter special distribution to its own shareholders of roughly C$5.22 per share if the MEG takeover closes or about C$10 if it does not.
  • Strathcona now holds roughly 14.2% of MEG after buying about 6.66 million shares for approximately C$190.8 million and intends to vote against the Cenovus transaction.
  • MEG’s special committee will review the revised hostile bid and is expected to respond by Sept. 15, as Cenovus continues to pitch a mostly‑cash alternative and MEG holders would own about 43% of a combined Strathcona‑MEG if that deal proceeds.