Cenovus Bumps MEG Energy Offer To $29.80 A Share

Cenovus Energy (TSX: CVE) evidently was getting nervous that it did not have the required shareholder support for the proposed acquisition of MEG Energy (TSX: MEG). The company early this morning elected to revised their offer to acquire MEG, bumping total consideration up to $29.80 per share.

The revised offer represents an increase of $2.35 per MEG share, while representing a 46% premium to the the 20-day volume weighted average price of MEG as of May 15, which was the day before Strathcona Resources (TSX: SCR) went public with their attempt to acquire the company. Shareholders of MEG can elect to receive $29.50 in cash as compensation for each share of MEG they hold, or 1.24 shares of Cenovus, or a combination of the two options.

Strathcona’s latest offer meanwhile amounts to 0.80 shares of Strathcona for each share of MEG held, which as of yesterday’s close amounts to consideration of $29.67 per share, although when the offer was initially made it amounted to consideration of $30.86 per share.

Cenovus has indicated the maximum capital outlay they are willing to commit to under the revised transaction is $3.8 billion in cash, while share issuances have been limied at 157.7 million shares. The revised offer is said to represent a 50/50 mix of cash and shares as consideration, while valuing MEG at an $8.6 million enterprise value.

“Since the Initial Cenovus Transaction was announced, there has been strong recognition of the industrial logic and the synergy potential between MEG and Cenovus. [..] The Improved Transaction Consideration implies a flowing-barrel metric of $79,500 per bpd, the highest value ever paid for a pure-play oil sands asset,” commented Darlene Gates, CEO of MEG Energy.

The shareholder meeting on the proposed transaction meanwhile has been delayed to October 22, 2025.

MEG Energy last traded at $28.24 on the TSX.


Information for this story was found via the sources and the companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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