Strathcona Resources has announced its intention to start a buyout to acquire all the ordinary actions issued and in the circulation of Meg Energy which are not already held by Strathcona or its affiliated companies.
The offer includes 0.62 on the one hand of Strathcona and $ 4.10 CST in cash by MEG, representing a premium of 9.3% based on the closing price of May 15, 2025.
The total counterpart offered by Strathcona Resources for the MEG Energy shares is $ 23.27 CA, on the basis of the recent closing course of the Toronto Stock Exchange (TSX).
The offer reflects a combination of 82.4% in Strathcona shares and 17.6% in cash.
The offer does not depend on the funding, the cash portion should be covered by the financing of the bridges of a lending union.
Waterous Energy Fund, holding a large part of Strathcona’s shares, plans to invest more through Waterous Energy Fund III for 21.4 million additional shares.
After the offer, Strathcona plans to have around 379 million shares in circulation and $ 1.5 billion in net debt, with the ownership of the existing shareholders of Strathcona and Meg, and Wef III.
The proposed acquisition aims to merge two heavy oil producers with similar nets and reserve life indices, creating the fifth oil producer of Canada.
The combined entity should have the financial scale for an investment quality credit rating. The shareholders of Strathcona and Meg should benefit from the merger, with significant accretion on key financial measures and $ 175 million in annual synergies identified.
The board of directors of Strathcona unanimously approved the offer and subject to the approval of TSX, the consent of shareholders for the issue of shares should be guaranteed by the written consent of WEF.
In addition, Strathcona Resources has concluded final agreements for the sale of its assets in Montney, Canada, for around 2.84 billion dollars.
Transactions include the sale of Kakwa, large meadow and Groundbirch assets with arc resources and tourmaline oil.
The sale of Kakwa to ARC resources is valued at $ 1.69 billion CA, including $ 1.65 billion in cash and around $ 45 million $ 45 million in supposed rental obligations.
“Strathcona Resources to Acquire Meg Energy Through Takeover Bid” was originally created and published by Offshore Technology, a brand belonging to Globaldata.
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