Strathcona Resources purchases additional MEG Energy shares

Strathcona Resources has made a significant investment, purchasing around 6.66 million common shares of Canadian oil producer MEG Energy for an estimated aggregate consideration of $190.8m (C$263.31m).

Before this acquisition, Strathcona beneficially owned around 9.2% of MEG Energy's shares, equating to 23.4 million shares.

With the addition of the newly acquired shares, its stake has increased to approximately 11.8%.

The average price paid for the shares since the start of the offer was $28.64, with the highest price reaching $28.80 per share.

This strategic share purchase by Strathcona comes at a time when MEG Energy faces potential acquisition by Cenovus Energy.

Strathcona has made its opposition to this deal clear, intending to vote against the resolution at the upcoming special meeting of MEG shareholders on 9 October.

The acquisition by Cenovus requires a two-thirds majority vote from MEG shareholders, and Strathcona's increased stake could influence the outcome.

The offer made by Strathcona at the end of May to acquire all issued and outstanding MEG shares that it does not already own includes a combination of Strathcona common shares and cash.

Specifically, for each MEG share, the offer consists of 0.62 of a Strathcona common share and $4.10 in cash.

Furthermore, Strathcona has indicated its intention to acquire up to an additional 5% of MEG's issued and outstanding shares, depending on market conditions.

In response to Strathcona's takeover bid, MEG Energy's board of directors advised shareholders to reject the offer in June this year.

Earlier this year, Strathcona signed definitive agreements to sell its Montney assets in Canada for around C$2.84bn.

"Strathcona Resources purchases additional MEG Energy shares" was originally created and published by Offshore Technology, a GlobalData owned brand.

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