Cenovus Energy Inc. again put forward a takeover bid for MEG Energy Corp., enlisting the support of Strathcona Resources Ltd., which opposed the deal.
Under the preferential offer, Cenovus is offering $30 in cash or 1.255 Cenovus shares for each MEG share, with a cap of $3.8 billion in cash and 159.6 million shares available under the offer.
This offer differs from the previous offer of $29.50 in cash or 1,240 shares of Cenovus common stock for each MEG share, capped at $3.8 billion in cash and 157.7 million shares available.
MEG shareholders will vote on the proposal, which is supported by MEG's board of directors, on Thursday.
“With the support of Strathcona, MEG currently expects approximately 79 percent of MEG shares represented by proxy or expected to be voted in person at the meeting to be approved by the enhanced Cenovus transaction,” MEG said in a statement.
A vote by MEG shareholders on the takeover bid, scheduled for last week, was postponed after it emerged it might fail to reach the required two-thirds majority for approval.
Strathcona Resources abandons takeover of MEG Energy
However, Cenovus announced on Monday that it has now secured the support of Strathcona, which owns a 14.2% stake in MEG and recently abandoned its own hostile bid for the company's shares.
Cenovus and MEG own adjacent oil sands properties in Lake Christina, south of Fort McMurray, Alta., and Strathcona also has operations in the region.
Cenovus also announced the sale of its Vawn heavy oil operation in Saskatchewan and certain undeveloped lands in western Saskatchewan and Alberta to Strathcona for $150 million, including $75 million in cash paid at closing and up to $75 million in contingent consideration contingent on future commodity prices. goods.
