Strathcona Resources to acquire MEG Energy through takeover bid

Stratecona Resources has announced its intention to start the attempt to obtain all the shared shared shares entitled to Meg Energy that Stratecona or its subsidiaries already have.

The offer includes 0.62 of the stratecona and $ 4.10 cash for each Meg, and it represents a 9.3 % bonus based on the closing price on May 15, 2025.

The total consideration of the StrateCona Resources of the MEG Energy shares is $ 23.27 each, based on the last closing stock on the Toronto Stock Exchange (TSX).

The width reflects a mixture of 82.4 % in Strathcona shares and 17.6 % cash.

The offer does not depend on funding, as the cash part is expected to be covered with the fund funding from the lending union.

Waterous Energy Fund, which carries a large part of Strathcona shares, plans to increase investment through Waterous Energy Fund III by subscribing to 21.4 million additional shares.

Stratecona expects Strathcona to have about 379 million suspended shares and $ 1.5 billion of net debt, with ownership distribution among current shareholders in Stratecona, Meg, and WeF III.

The proposed acquisition aims to integrate heavy oil producers with NetBacks indexes and reserve life indicators, creating the fifth largest oil producer in Canada.

The joint entity is expected to have the financial range of credit classification of the investment category. It is expected that both Strathcona and MEG shareholders will benefit from integration, with a great accumulation of main financial standards and 175 million Canadian dollars in the specified annual synergy.

Stratecona’s Board of Directors agreed to the offer unanimously, and it is fought for TSX approval, which is expected to secure the approval of the shareholders to issue shares through the WEF’s written approval.

In addition, StrateCona Resources has concluded final agreements to sell their assets in Monnene, Canada, for about $ 2.84 billion.

Transactions include the sale of Kakwa, Grande Prairie, GroundBIRCH assets to Arc Resources and Tourmaline Oil.

The value of the sale of Kakwa to Arc Resources is estimated at $ 1.69 billion, and it consists of $ 1.65 billion in cash and 45 million Canadian dollars in supposed rental obligations.

“Stratecona Resources to get Meg Energy through BID” was originally created and published by Offshore Technology, a brand owned by Globaldata.

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