The company said it would offer 0.62 Strathcona shares and $4.10 in cash for each MEG share, a 9.3 per cent premium based on the company’s May 15 closing price. Strathcona is led by prominent Calgary energy investor Adam Waterous, whose Waterous Energy Fund holds 79.6 per cent of Strathcona Resources shares. (The Logic)
Skip to content
The company said it would offer 0.62 Strathcona shares and $4.10 in cash for each MEG share, a 9.3 per cent premium based on the company’s May 15 closing price. Strathcona is led by prominent Calgary energy investor Adam Waterous, whose Waterous Energy Fund holds 79.6 per cent of Strathcona Resources shares. (The Logic)
Talking point: MEG shares leapt more than 17 per cent on Friday following the unsolicited bid, reversing the company’s stock market slump that has persisted since oil prices fell to a four-year low in April. Strathcona’s proposed takeover of MEG is also the latest example of consolidation in the Alberta oilsands. Strathcona operates heavy oil facilities in Cold Lake and Lloydminster, while MEG is developing two heavy oil reserves south of Fort McMurray. Combining the two would create Canada’s fifth-largest oil company, Strathcona said, with around 200,000 barrels per day of oil production. The offer would be open for 105 days, it added.
Loading...
Thanks for sharing!
You have shared 5 articles this month and reached the maximum amount of shares available.
CloseThis account has reached its share limit.
If you would like to purchase a sharing license please contact The Logic support at [email protected].
CloseGift the full article!
You have gifted 0 article(s) this month and have 5 remaining.
Recipients will be able to read the full text of the article after submitting their email address. They will not have access to other articles or subscriber benefits.
Most Popular This Week
In-depth, agenda-setting reporting
Great journalism delivered straight to your inbox.
Commentary
Carmichael: Was Chicken Little stirring panic, or just taking precautions?
Briefing
Carney plans to discuss US$135B defence bank with new U.K. prime minister
B.C. nearing federal MOU of its own as talks continue on Alberta’s West Coast pipeline
Quebecor urges CRTC to block Corus restructuring as part of takeover push
Best business newsletter in Canada
Get up to speed in minutes with insights and analysis on the most important stories of the day, every weekday.
Exclusive events
See the bigger picture with reporters and industry experts in subscriber-exclusive events.
Membership in The Logic Council
Membership provides access to our popular Slack channel, participation in subscriber surveys and invitations to exclusive events with our journalists and special guests.
