Cenovas signed a $ 7.9B deal to buy Meg as Strathankona says the company ‘is hunting on a weak board’
Meg Energy Inc. has accepted a friendly cash-end-stock takeover offer from the $ 7.9 billion oil neighboring Energy Inc., including the earlier bidder to the Energy Inc.
MEG President James McFarland said on Friday that Strathakona reviewed all available options to promote shareholder price after stratchona made its acquisition attempt.
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 transaction with Senovas represents the best strategic option,” Macfarland said that the Special Committee and the MEG board unanimously concluded that the Special Committee and the MEG board assessed them against them against the stand-alon plan.
Side-by-side oysands operations
Cenovus was most likely deployed as a company to launch a competitive bid by those who monitor the industry as IT and Meg have the assets of side-by-side oil to Christina Lake south in the south of Fort McMancare, Alta, it can be more efficient simultaneously.
Sanovas said the deal represents a unique opportunity to achieve about 110,000 barrels per day per day with its operation.
It is predicting an annual cost of $ 150 million per year in 2026 and 2027 and $ 400 million per year in 2028 and if the deal is done.
On a conference call with analysts on Friday, CEO John McKenzie, CEO of Senovus, used Meg to one of the top producers who use the method to extract bitumen from deep underground, using steam-assisted gravity drainage, or SAGD. In Sagd, the bitumen is heated and drawn on the surface through wells instead of mining in an open pit.
McKenzie said, “We are very excited to take advantage of the best practices of both companies.
“In Sanovas, we are committed to carrying forward the boundaries of SAGD innovation and this combination brings two of the two best performing producers together in this space.”
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, making the deal “minor tech-under”, analyst of Desjardins Securities Chris Makkuloch said in a research note.
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.
“We assume that the offer of the Sanovas should prove to be more attractive to the meg shareholders, but it includes a large cash component, while allowing them to participate in the better coordination capacity of the joint unit through a more liquid equity component,” Makkuloch wrote.
The deal should be approved by two-thirds of the majority meg shareholders in one vote set for October.
Makkuloch said that Senovas has left the financial room itself, when needed to sweeten the deal and the proposed transaction is called “strategic masterstroke”.
‘Preming on a weak board’: Stratchona Execution
In a statement emailed to CBC News, Stretthkona’s Executive Chairman Adam Waters voiced his opposition to the deal.
He said, “A weak board hates Senovas to hunt, which is almost no share in business and clearly adopted Stretthkona to play the company as a result of playing the company,” has adopted the scene ‘, “he said. “I am sure Senovas felt that the conversation with the meg board was like taking candy from a child.”
Waterus said that the Starthakona will engage with meg shareholders before the September 15 deadline on the company’s proposal.
“Meg board has agreed to an under-under-under only by Senovus,” he said. “The price reflects one dollar per share per share than the price of Stratchona’s proposal.”
Meg had expressed concern over the Water Energy Fund, which was the owner of 51 percent of the joint company when Strathankona succeeded, but Waterus said that the fund had no intention of selling its share.
When it announced his acquisition attempt in May, Strathakona revealed that it holds a 9.2 percent stake in the Meg.
“Should Strethkona fail in his tender proposal, it will be a 9.2 percent ownership in Meg against the offering of the Senovus and will proceed with its first revealed plan to return to about $ 10 per share by the end of the year for its shareholders.”
