Strathcona Resources (TSX: SCR) isn’t about to let a definitive agreement between MEG Energy (TSX: MEG) and Cenovus Energy (TSX: CVE) get in the way of their attempt to acquire MEG.
Strathcona last night declared that, after talking with “fellow MEG shareholders over the past week,” they intend to continue their pursuit of the acquisition of MEG. The company has declared that they intend to reject the Cenovus offer when it comes time for the shareholder vote, which is presently scheduled for October 9.
At the same time, Strathcona intends to increase their ownership in MEG. The company currently holds 23.4 million shares of the oil producer, representing 9.2% of the issued and outstanding shares. They intend to increase that figure to 14.2%.
The purchases of additional shares are said to come “as soon as practicable.”
Strathcona earlier this year launched a hostile takeover bid for MEG Energy, attempting to acquire the producer for $5.9 billion, or $23.27 a share. MEG subsequently rejected that offer before entering into a definitive agreement with Cenovus, agreeing to be acquired for $7.9 billion or $27.25 a share.
Strathcona Resources last traded at $38.41 on the TSX.
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