‘Fundamentally unattractive’: MEG urged shareholders to reject the latest Stratchona dialect
Oilsands Developer Meg Energy Corp. The board of directors of the directors of the directors to reject a sweet hostile dialect from Strathankona Resource Limited, reject it from the lower-but more cash-Haavi-Industry Heavyweight Seenovas Energy Inc.
The initial overcher of Stretthkona This was a combination of spring cash and stock. When the new bid was announced last week, it was priced at $ 30.86 per share, above $ 28.02.
MEG shareholders in the Sanovas Off will be selected between $ 27.25 cash or 1.325 Sanovas common shares for each meg share, subject to some limitations. On a fully pro-respected basis, it will be $ 20.44 in cash and about one-third of Sanovas share.
James McFarland, chairman of the MEG Board, said in a news release on Monday, “The modified Stratchona offer remains fundamentally ugly for the meg shareholders as it fails to address or adequately compensate for important risks embedded in Strathakona shares.”
“MeG shareholders will be made aware of inferior assets, an unproven track record, an overwelled stratchona share price, significant overhang risk and governance risk.”
Conversely, McFarland said, the Cenovas deal provides the price growth capacity, cash and certainty of the share that is worth the MEG shareholders.
Cenovus and Meg have side-by-side oil properties in Christina Lake, Christina Lake, south of Alta, and both companies have postponed capabilities and cost savings that can be obtained if they can be involved in forces.
Darlen Gates, Chief Executive Officer of Meg, said, “Through our engagement with MEG shareholders, we have heard the excessive acceptance of the industrial argument of Senovus transactions.”
Stretthkona, which also has steam-powered oysands operations in the region, has called the Senovus deal “lopsard” and the selling process “broken” to accept it.
The updated Strathankona dialect also includes a special distribution, which is about $ 4.18 per share to succeed the deal. Meg said on Monday that distribution would not benefit the shareholders as it will reduce the market price of the joint company.
The two-thirds majority of the Senovas deal should be approved by the Meg shareholders to be held on 9 October.
Stretthkona says that it intends to vote for 14.2 percent interest in the meg against the deal. Its offer is open till 20 October.
