The company sidestepped MEG management and went directly to shareholders with an offer to pay $4.10 and 0.62 Strathcona shares per MEG share, according to a circular filed on Friday. Strathcona’s offer, first proposed earlier this month, represents a 9.3 per cent premium to MEG’s May 15 closing price. (The Logic)
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The company sidestepped MEG management and went directly to shareholders with an offer to pay $4.10 and 0.62 Strathcona shares per MEG share, according to a circular filed on Friday. Strathcona’s offer, first proposed earlier this month, represents a 9.3 per cent premium to MEG’s May 15 closing price. (The Logic)
Talking point: If successful, this could be one of the largest energy sector acquisitions in the past decade, with the merged companies set to become Canada’s fifth largest oil producer, according to Strathcona. MEG management urged shareholders to take no action on the unsolicited bid, saying it had formed a special committee that would respond within 15 days. Strathcona is led by prominent Calgary energy investor Adam Waterous, whose Waterous Energy Fund has a 79.6 per cent stake in the oil producer. In its filing, the company said it would fund the acquisition in part through a $662-million equity sale that values its shares at $30.92.
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