Latest news with #AdamWaterous
The Star
a day ago
- Business
- The Star
Strathcona plans special dividend if takeover fails
A takeover of MEG would be the biggest acquisition yet for Strathcona. — Bloomberg NEW YORK: Strathcona Resources Ltd plans to issue a special dividend and increase the liquidity of shares traded should the company's takeover attempt of MEG Energy Corp fall through. Buying MEG is not 'Plan A' for Strathcona, chairman Adam Waterous said Monday about the Canadian oil company's C$6.6bil hostile takeover attempt of the rival oil sands producer. A failure won't be a major setback, he said. 'If we don't buy MEG, we'll probably issue a special dividend of about C$10 a share,' Waterous said. 'We're in a very fortunate situation that our status quo is extremely compelling.' In May, Strathcona offered about C$23.27 per MEG share in a cash-and-stock offer for the company shortly after agreeing to sell its assets in the Montney shale formation in western Canada in a C$2.8bil deal. Last month, MEG's board advised shareholders to reject Strathcona's bid, calling it inadequate and saying that combining with Strathcona would expose its investors to 'inferior assets'. The board also started a strategic review that may include finding other offers. A takeover of MEG, which Waterous called 'Plan A+', would be the biggest acquisition yet for Strathcona, which the former investment banker built through a flurry of deals over the past decade. The deal would make Strathcona a major heavy crude oil producer, adding MEG's roughly 100,000 barrels of daily output from its Christina Lake asset to Strathcona's projected 120,000 barrels of daily production. The proposal would provide MEG shareholders with synergies by being part of a larger company with multiple operations, and a successful takeover would upgrade Strathcona to investment grade and increase the company's liquidity so that the shares would be included on stock indexes, Waterous said. Strathcona became a public company two years ago through an all-share purchase of Pipestone Energy Corp, but 91% of the shares were held by Waterous Energy Fund through a series of partnerships. — Bloomberg
Bloomberg
2 days ago
- Business
- Bloomberg
Strathcona Plans Special Dividend If Takeover of Rival MEG Fails
Strathcona Resources Ltd. plans to issue a special dividend and increase the liquidity of shares traded should the company's takeover attempt of MEG Energy Corp. fall through. Buying MEG is not 'Plan A' for Strathcona, chairman Adam Waterous said Monday about the Canadian oil company's C$6.6 billion ($4.4 billion) hostile takeover attempt of the rival oil sands producer. But a failure won't be a major setback, he said.
Toronto Sun
14-07-2025
- Business
- Toronto Sun
'Apoplectic:' Competition Bureau drops probe into U.S. company's sightseeing dominance in Banff/Jasper
The Jasper sky tram was bought by American company Photo supplied by Jasper tourism A federal competition regulator's decision to drop its probe into an American company's dominance of the Banff-Jasper sightseeing market appears to be Canada caving to the U.S. amid an ongoing tariff war, says a businessman who pushed for the investigation. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account The Competition Bureau of Canada last year launched an investigation into Colorado-based VIAD's acquisition of the Jasper SkyTram that was approved by Parks Canada in the summer of 2024. The purchase pushed the company's market share of the sightseeing sector in Banff and Jasper national parks to more than 90 per cent. In a letter to Adam Waterous, owner of Mt. Norquay ski resort, the bureau said it could find no evidence that the acquisition noticeably exacerbates domination of the privately operated tourist attraction in Canada's two most-visited national parks. 'Based on the information obtained by the Bureau, it does not appear the acquisition has resulted or is likely to result in a substantial lessening or prevention of competition,' states the April 30 letter. Your noon-hour look at what's happening in Toronto and beyond. By signing up you consent to receive the above newsletter from Postmedia Network Inc. Please try again This advertisement has not loaded yet, but your article continues below. 'Accordingly . . . I am writing to inform you that the commissioner has discontinued the inquiry.' VIAD, through its subsidiary Pursuit, operates the Banff Gondola at Sulphur Mountain, Lake Minnewanka Cruise, Columbia Icefield Adventure, Jasper's Maligne Lake Cruise and the Columbia Icefield Skywalk, which comprise the lion's share of that market of paid attractions. It also owns Brewster Express bus line and 10 hotels throughout those parks (two are in Banff), while also operating the iconic Prince of Wales Hotel in Waterton Lakes National Park. Since 2011, Parks Canada has approved VIAD's applications for one new sightseeing attraction, an expansion of a tourist venue, eight hotel purchases and one hotel construction, which boosted the company's share of the market from 50 per cent to 85 per cent, said Waterous . This advertisement has not loaded yet, but your article continues below. At the same time, Parks Canada has repeatedly turned down Norquay's bid to build a gondola from the Banff townsite to its ski hill, insisting the plan was ' found not to be feasible due to non-conformance with key park policy and legislation. ' Unfair treatment appeases U.S. trade war says ski hill owner Waterous said the competition bureau's refusal to address what he calls an obviously unfair and detrimental monopoly is an abdication of its role and smacks of Ottawa seeking to avoid inflaming a trade war instigated by U.S. President Donald Trump. 'Canadians are going to be apoplectic that the federal government is not prepared to challenge an American monopoly in the national parks,' Waterous said Monday, adding the move is akin to Ottawa's decision last month to nix its digital sales tax (DST) at the insistence of the U.S. amid tariff wrangling. This advertisement has not loaded yet, but your article continues below. 'This tariff war we're in is causing the federal government not to enforce regulations they normally would . . . its like the DST — things are being put on the shelf.' Waterous said it appears the competition bureau is reluctant to take action that would effectively criticize Parks Canada's decision to approve VIAD's acquisition of the Jasper SkyTram. The businessman said he spoke with a competition bureau official several weeks ago who 'explicitly told me they respect the decisions of other agencies and don't want to embarrass other (government) departments,' he said. He also said that official told him it's up to consumers to vote with their feet if they're feel they're faced with an unfair monopoly in the national parks. This advertisement has not loaded yet, but your article continues below. 'They determined visitors have alternatives — you don't have to go to Banff or Jasper . . . if you do, you can just go to a restaurant instead,' said Waterous. 'But the bureau never says there's not a monopoly there.' Waterous and the owners of Sunshine Village and Lake Louise ski resorts — who operate summer chair lifts — argue VIAD's ability to offer discounts on package deals magnifies a monopoly that unfairly funnels business away from them. The view of the Banff townsite and Sanson's Peak from the Banff Gondola's observation deck on the fourth floor of the upper terminal. Daniel Katz/Postmedia file The say that monopoly has also allowed the American firm to dramatically hike prices on attractions like its marquee offering, the Banff Gondola, while also contending it drives much of the negative traffic congestion in Banff town. On its website, VIAD has said the $25-million purchase of the Jasper SkyTram adds an attraction to its inventory that in 2023 drew 130,000 visitors. This advertisement has not loaded yet, but your article continues below. 'We will benefit from its deep competitive moat, economies of scale and scope, and the strong perennial demand for this iconic destination,' company president Steve Moster said in a statement in June 2024. The term ' competitive moat ' shows VIAD acknowledges its competitive invulnerability, says Waterous. In an email, competition bureau spokeswoman Sarah Brown reiterated the agency's investigation didn't uncover any violations. 'After careful review, the Bureau found that there was inadequate evidence to conclude that the transaction contravenes the merger provisions of the Competition Act,' she stated, adding its decisions aren't associated with any other government body. 'Our independence is core to the delivery of our mandate . . . when the bureau finds evidence that a transaction contravenes the Competition Act we take appropriate action.' BKaufmann@ X: @BillKaufmannjrn Editorial Cartoons NFL Golf NHL World
Calgary Herald
14-07-2025
- Business
- Calgary Herald
'Apoplectic:' Competition Bureau drops probe into U.S. company's sightseeing dominance in Banff/Jasper
A federal competition regulator's decision to drop its probe into an American company's dominance of the Banff-Jasper sightseeing market appears to be Canada caving to the U.S. amid an ongoing tariff war, says a businessman who pushed for the investigation. Article content The Competition Bureau of Canada last year launched an investigation into Colorado-based VIAD's acquisition of the Jasper SkyTram that was approved by Parks Canada in the summer of 2024. The purchase pushed the company's market share of the sightseeing sector in Banff and Jasper National Parks to more than 90 per cent. Article content Article content Article content In a letter to Adam Waterous, owner of Mt. Norquay ski resort, the bureau said it could find no evidence that the acquisition noticeably exacerbates domination of the privately-operated tourist attraction in Canada's two most-visited national parks. Article content Article content 'Based on the information obtained by the Bureau, it does not appear the acquisition has resulted or is likely to result in a substantial lessening or prevention of competition,' states the April 30 letter. Article content 'Accordingly…I am writing to inform you that the commissioner has discontinued the inquiry.' Article content VIAD through its subsidiary Pursuit operates the Banff Gondola at Sulphur Mountain, Lake Minnewanka Cruise, Columbia Icefield Adventure, Jasper's Maligne Lake Cruise and the Columbia Icefield Skywalk, which comprise the lion's share of that market of paid attractions. Article content It owns Brewster Express bus line and 10 hotels throughout those parks (two are in Banff), while also operating the iconic Prince of Wales Hotel in Waterton Lakes National Park. Article content Article content Since 2011, Parks Canada has approved VIAD's applications for one new sightseeing attraction, an expansion of a tourist venue, eight hotel purchases and one hotel construction, which had boosted the company's share of the market from 50 per cent to 85 per cent, said Waterous. Article content At the same time, Parks Canada has repeatedly turned down Norquay's bid to build a gondola from the Banff townsite to its ski hill, insisting the plan was 'found not to be feasible due to non-conformance with key park policy and legislation.' Article content Waterous said the competition bureau's refusal to address what he calls an obviously unfair and detrimental monopoly is an abdication of its role and smacks of Ottawa seeking to avoid inflaming a trade war instigated by U.S. President Donald Trump. Article content 'Canadians are going to be apoplectic that the federal government is not prepared to challenge an American monopoly in the national parks,' Waterous said Monday, adding the move is akin to Ottawa's decision last month to nix its digital sales tax (DST) at the insistence of the U.S. amid tariff wrangling.
Yahoo
25-06-2025
- Business
- Yahoo
Strathcona Welcomes MEG Efforts to Find Better Acquisition Bid
This article was first published on Rigzone here After being rebuffed by MEG Energy on its offer to acquire all the issued and outstanding shares of the company, Strathcona said it 'welcomes the MEG board's efforts to market-test the offer against other acquisition proposals'. 'Strathcona is delighted that the MEG board has accepted Strathcona's recommendation to initiate a strategic alternatives process for the business and fully supports them contacting other potential acquirers to determine if a superior transaction to Strathcona's offer is available,' Stratchona Executve Chairman Adam Waterous said in a statement. On May 30, Strathcona made a formal offer to acquire all the issued and outstanding MEG shares it does not already own for a combination of 0.62 of a Strathcona share and $4.10 in cash per MEG share, which remains open until September 15. MEG's second largest shareholder said it 'looks forward to engaging constructively and in good faith with the MEG board'. Strathcona said it posted a new presentation on its website that 'corrects a variety of errors and misleading statements in the Directors' Circular which MEG and Strathcona shareholders are encouraged to review'. 'Strathcona looks forward to participating in the strategic alternatives process which will also provide an opportunity for MEG's board to learn more about Strathcona, something which it has declined to do to date. To give the MEG board a head start in understanding our business, we have corrected a variety of inaccuracies contained in their circular,' Waterous said. Last week, MEG's board released a statement saying that the acquisition bid was 'inadequate, opportunistic, and not in the best interests of MEG or its shareholders'. MEG Chairman James McFarland said, "Strathcona's Offer is inadequate by all reasonable measures and is not the right path forward for MEG shareholders. A combination with Strathcona would expose shareholders to inferior assets and significant capital markets risks, including a $6 billion overhang resulting from Waterous Energy Fund's [WEF] 51 percent ownership in the combined company, which would allow WEF investors to realize liquidity over time'. Take control of your THOUSANDS of Oil & Gas jobs on Search Now >> The MEG board published a Directors' Circular, explaining the reasons for its recommendation to reject the proposal. According to the circular, the Strathcona offer 'lacks a real premium'. Since the announcement of the offer, MEG shares have consistently traded above the implied value of the offer, indicating that the market believes it significantly undervalues MEG's shares, the board said. "MEG has driven substantial transformation over the last few years," MEG CEO Darlene Gates said. "With a stronger balance sheet and low-risk growth from our accretive Facility Expansion Project, we are delivering sustainable shareholder returns. Our growing free cash flow supports a robust return of capital program, while our multi-year investment plan provides access to high quality resources and reduces per-barrel costs and sustaining capital'. According to the MEG statement, the company has received written opinions from financial advisors BMO Capital Markets and RBC Capital Markets that the consideration under the offer is inadequate for shareholders. The MEG board has created a special committee to initiate a strategic review of alternatives with the potential to surface an offer superior to the company's compelling standalone plan. MEG has begun an outreach to potential parties to explore and solicit potential interest in an alternative value-maximizing transaction for shareholders, according to the statement. Strathcona said its offer remains 'compelling' for the shareholders of both companies and provides a 'true win-win' that would unite 'two heavy oil 'pure plays' into a new Canadian oil champion, while delivering significant accretion to MEG and Strathcona shareholders on all key metrics'. To contact the author, email More From The Leading Energy Platform: Oil Prices Dropped 'Significantly' Following Ceasefire News FLNG Gimi Reaches Commercial Operation Oil Market Sees 1 in 5 Chance of Material Gulf Disruption North America Rig Count Stays Flat >> Find the latest oil and gas jobs on << Erreur lors de la récupération des données Connectez-vous pour accéder à votre portefeuille Erreur lors de la récupération des données Erreur lors de la récupération des données Erreur lors de la récupération des données Erreur lors de la récupération des données
