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2d ago

Strathcona Raises Hostile Offer for MEG to C$30.86 a Share, Topping Cenovus

The outcome now hinges on October decisions as MEG seeks shareholder approval for Cenovus’s board‑backed deal and Strathcona keeps its higher stock bid active.

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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 amended all‑share bid offers 0.8 Strathcona share for each MEG share, valuing MEG at about C$30.86 per share or roughly C$7.85 billion excluding debt.
  • Cenovus’s friendly proposal gives MEG investors a choice of C$27.25 in cash or 1.325 Cenovus shares per MEG share, subject to caps of C$5.2 billion in cash and 84.3 million shares.
  • MEG’s board unanimously supports the Cenovus transaction, which requires approval by two‑thirds of votes at an Oct. 9 shareholder meeting.
  • Strathcona has increased its MEG stake to about 14.2% and says it will vote against the Cenovus deal; its revised offer remains open until Oct. 20.
  • Strathcona plans a fourth‑quarter special dividend to its own shareholders of C$5.22 per share if the MEG acquisition succeeds, or C$10 per share if it does not.