Latest news with #Strathcona
Yahoo
4 days ago
- 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
Winnipeg Free Press
20-06-2025
- Business
- Winnipeg Free Press
Strathcona defends unsolicited takeover offer for oilsands peer MEG Energy
CALGARY – Strathcona Resources Ltd. says MEG Energy Corp. has made errors and misleading statements in its justifications for rejecting its unsolicited takeover bid. Last month, Strathcona made a cash-and-stock offer to buy all of the MEG shares it does not already own, and MEG shares have consistently been trading higher than the implied offer price. Earlier this week, MEG urged shareholders to reject the bid, in part because it says combining with Strathcona would expose shareholders to inferior assets and capital market risk. Strathcona has published a new presentation taking aim at the 'Fact vs. Fiction' in MEG's director's circular outlining its rationale for opposing the offer. In the presentation, Strathcona says its oilsands assets are comparable to or sometimes better than MEG's. It adds that Waterous Energy Fund, led by Strathcona executive chairman Adam Waterous, has no intention of selling its stake in Strathcona post-takeover, which MEG contends is a risk. Monday Mornings The latest local business news and a lookahead to the coming week. This report by The Canadian Press was first published June 20, 2025. Companies in this story: (TSX: MEG) (TSX: SCR)
Yahoo
20-06-2025
- Business
- Yahoo
Strathcona defends unsolicited takeover offer for oilsands peer MEG Energy
CALGARY — Strathcona Resources Ltd. says MEG Energy Corp. has made errors and misleading statements in its justifications for rejecting its unsolicited takeover bid. Last month, Strathcona made a cash-and-stock offer to buy all of the MEG shares it does not already own, and MEG shares have consistently been trading higher than the implied offer price. Earlier this week, MEG urged shareholders to reject the bid, in part because it says combining with Strathcona would expose shareholders to inferior assets and capital market risk. Strathcona has published a new presentation taking aim at the "Fact vs. Fiction" in MEG's director's circular outlining its rationale for opposing the offer. In the presentation, Strathcona says its oilsands assets are comparable to or sometimes better than MEG's. It adds that Waterous Energy Fund, led by Strathcona executive chairman Adam Waterous, has no intention of selling its stake in Strathcona post-takeover, which MEG contends is a risk. This report by The Canadian Press was first published June 20, 2025. Companies in this story: (TSX: MEG) (TSX: SCR) Lauren Krugel, The Canadian Press Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
20-06-2025
- Business
- Bloomberg
Waterous' Strathcona Stands By Its Offer for MEG After Rebuttal
Canadian oil tycoon Adam Waterous' Strathcona Resources Ltd. stood by its offer for MEG Energy Corp. after having the $4.1-billion hostile takeover bid rejected by MEG's board. 'Strathcona firmly believes its offer provides a true win-win for MEG and Strathcona shareholders, uniting two heavy oil 'pure plays' into a new Canadian oil champion,' the company said in a statement, adding that it also welcomed a move by MEG's board to sound out alternative suitors.
Reuters
20-06-2025
- Business
- Reuters
Strathcona supports MEG's strategic alternative process after rejected C$6 billion bid
June 20 (Reuters) - Canadian oil and gas producer Strathcona ( opens new tab said on Friday it supports MEG Energy's ( opens new tab decision to initiate a strategic alternatives process and explore potential deals after MEG urged shareholders to reject Strathcona's C$6 billion ($4.38 billion) hostile takeover bid. On Monday, MEG Energy advised shareholders to reject the offer, describing it as inadequate and not in their best interests. The board also launched a strategic review to consider alternatives that could deliver greater value than MEG's current plan to remain a standalone company. Strathcona, which is backed by Calgary-based private equity firm Waterous Energy Fund, said it remains willing to participate in the alternatives process and looks forward to constructive engagement with MEG's board Strathcona said it believes it is the only peer company which would provide meaningful overhead synergies if a deal is reached. Since 2020, Strathcona, has become one of the fastest-growing oil companies in North America through a series of acquisitions. The all-cash-and-stock offer announced by Strathcona in May, would combine two of Canada's largest pure-play thermal oil sands operators and make Strathcona the country's fifth-largest oil producer. ($1 = 1.3691 Canadian dollars)
