Canada-based oil and gasoline producer Strathcona Sources has sweetened its takeover provide for oil sands producer MEG Power.
The revised bid follows Strathcona’s latest acquisition of roughly 6.66 million MEG shares for $190.8m.
New phrases set by Strathcona provide 0.80 of a typical share for every MEG share. This revised provide values MEG at C$30.86 per share.
Strathcona mentioned that the revised provide represents an 11% premium over the present worth of an settlement between MEG and Cenovus Power, introduced in August of this 12 months.
It additionally represents a ten% improve from Strathcona’s preliminary bid, valued at C$28.02 per MEG share.
The premium relies on the common share costs of Strathcona and Cenovus as of 5 September 2025.
Beforehand, Strathcona introduced plans for a particular distribution of C$2.14bn to its shareholders within the fourth quarter, both as a dividend or a return of capital.
If the takeover succeeds, this distribution will translate to roughly C$5.22 per Strathcona share. If the bid fails, the distribution could be round C$10 per share to present Strathcona shareholders.
Put up-takeover and particular distribution, Strathcona anticipates having 410 million shares excellent and C$3bn in internet debt.
Strathcona’s possession could be break up, with round 48% held by Waterous Power Fund and Strathcona insiders, 9% by present Strathcona shareholders and 43% by MEG shareholders.
MEG’s particular committee and board are set to evaluate the revised Strathcona provide and can present a response by 15 September 2025.
BMO Capital Markets and Burnet, Duckworth & Palmer are advising MEG, whereas RBC Capital Markets and Norton Rose Fulbright Canada are counselling the particular committee.
“Canada’s Strathcona raises MEG Power takeover bid” was initially created and revealed by Offshore Know-how, a GlobalData owned model.
The data on this website has been included in good religion for common informational functions solely. It’s not supposed to quantity to recommendation on which you must rely, and we give no illustration, guarantee or assure, whether or not specific or implied as to its accuracy or completeness. You will need to receive skilled or specialist recommendation earlier than taking, or refraining from, any motion on the idea of the content material on our website.
