Senovas signs a $ 7.9 billion cash-end-stock deal to buy meg energy
Cenovus Energy Inc. has signed a cash-end-stock deal to buy Meg Energy Corp, which gives importance to the company in $ 7.9 billion, including loans.
The deal was given an unwanted proposal for Meg in May after the Stretthkona Resource Limited, which the company urged the shareholders to reject the shareholders.
Meg President James McFarland said that the special committee of the company made a comprehensive review of all available options to maximize the price.
McFarland said in a statement, “After considering the Streticona unwanted proposal, the Special Committee and the MEG board unanimously concluded that the special committee and the MEG board concluded that the proposed transactions with Senovas represent the best strategic options,” McFarland said that the Special Committee and the MEG board unanimously concluded that the Special Committee and the MEG Board unanimously assessed them against them against the standalone plan.
Cenovas Chief Executive Officer John McKenzie said that the deal represents a unique opportunity to achieve around 110,000 barrels per day for production that sits adjacent to the operation of its main Christina lake.
McKenzie said, “The magnitude of what we have identified makes it a compelling price manufacturing opportunity for the Senovus shareholders,” McKenzie said.
“Meg’s team has done a great job to develop these assets, and we are ready to take advantage of their joint expertise and scale to run additional values ​​for many years to come.”
Under the agreement, MeG shareholders may receive $ 27.25 cash or 1.325 sanvas common shares for each MeG share, subject to the range of $ 5.2 billion cash and 84.3 million Senovas shares.
On a fully pro-respected basis, the offer offer per meg shares represents $ 20.44 in cash and 0.33125 of the Sanovas stock.
Meg’s shares closed at $ 27.56 on the Toronto Stock Exchange on Thursday, while Senovas shares closed at $ 21.17.
The deal should be approved by a two-thirds majority of votes by the Meg shareholders to be held in October.
Stretthkona’s proposal, which is open until 15 September, includes a combination of 0.62 of the Stratchona stock and a combination of $ 4.10 per meg shares. Depending on the price of Stretthkona’s closing share of $ 38.83 on Thursday, it is priced at $ 28.17 per meg share.
