Stretthkona Resource sweets the takeover offer for Meg Energy
Stretthkona Resource Limited is increasing its acquisition for Meg Energy Corp, which offers an option for a meg -friendly deal acquired by Cenovus Energy Inc.
Adam Waters, Executive Chairman of Strathakona, said that his proposal on Monday has benefits beyond its rich price.
Under the proposal, Stratchona is offering 0.80 shares per meg share, it is not already. This gives importance to the proposal at $ 30.86 per share, with its pre -bid $ 28.02 per share. The new proposal ends on 20 October.
Meg shareholders in the Cenovas Off will be selected between $ 27.25 for each meg share or 1.325 Sanovas Common shares in cash, under the range of $ 5.2 billion cash and 84.3 million Senovas stocks.
Waterus calculates a gap of $ 3.9 billion for that quantity to meg shareholders, and he does not recently see any example for a public company that accepts such a deal.
Waterus said in an interview on Monday, “Congratulations, Meg Board – You are ranked first in the last 20 years for your shareholders in the last 20 years. You win the award.”
These are two fundamentally different routes.– Adam Waterus, Executive Chairman of Strathankona Resources
He said that on August 22, the market reaction in the days after offering Senovas shows how much it does not evaluate. Cenovas stock jumped 10 percent. The share price of an acquisition usually falls after such an announcement.
Meg and Senovas did not immediately comment.
Waterus said that there are significant differences between the two proposals that are beyond the headline procurement price.
The Stratchona offer is a share, while the Senovus is offering some shares, but is more heavy on cash. If Meg joined the army with Stratchona, its shareholders would have 43 percent of the joint unit.
“These are two fundamentally different routes. There is a cash exhaust, which causes the Senovas a profit of $ 3.9 billion,” Waterus said.
“And the other you are not getting off the train; you stay in the train and you try to capture it over time.”
The board of Meg has expressed concern about Stretthkona’s majority shareholder – Waterus Energy Fund, which sells its stake after water running.
Waterus said it would be for a long race and there is no intention of exiting after the possible deal is closed. He said on Monday that his fund would be ready to enter a lockup agreement, if Meg should not sell shares to support his dialect.
The Cenovus deal should be approved by the two-thirds majority of votes by the MeG shareholders to be held on 9 October. Stretthkona says that it intends to vote for its 14.2-percent-per cent interest in MeG against the deal.
Cenovus and Meg have side-by-side oil properties in Christina Lake, south of Fort McMare, Alta. Stretthkona is also operated in the area, and Waterus stated that a combination with their firm would provide the same benefit.
On Monday, Meg Shares were at 36 CIT $ 28.71 in morning trading at Toronto Stock Exchange
