Strathcona terminates take-over bid for MEG Energy

Strathcona Resources (TSX:SCR:CA [https://seekingalpha.com/symbol/SCR:CA]) on Friday announced the termination of its take-over bid for MEG Energy (OTCPK:MEGEF [https://seekingalpha.com/symbol/MEGEF]), effective immediately.

As a result, no MEG shares will be taken up under the offer and the shares that have been deposited will be returned to MEG shareholders, the company said.

“Strathcona has concluded that the MEG Board's ability to continuously extend the Cenovus meeting date, and continuously allow Cenovus to purchase and vote additional shares, makes an improved offer for MEG impractical and not in the best interests of Strathcona shareholders,” it said [https://seekingalpha.com/pr/20262523-strathcona-resources-ltd-terminates-take-over-bid-for-meg-energy-corp-announces-shareholder].

Last month, Strathcona Resources has acquired [https://seekingalpha.com/pr/20218452-strathcona-resources-ltd-confirms-acquisition-of-additional-common-shares-of-meg-energy-corp#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]6,664,400 common shares of MEG Energy for a total of about $190.8 million and stated that it plans to vote its MEG shares against the proposed acquisition of MEG by Cenovus Energy (CVE [https://seekingalpha.com/symbol/CVE]).

Cenovus Energy, in August, agreed to acquire [https://seekingalpha.com/pr/20208967-cenovus-announces-agreement-to-acquire-meg-energy#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews] MEG Energy in a cash and stock deal valued at C$7.9B (~US$5.7B) including debt, creating one of Canada's largest oil sands companies. The deal topped Strathcona’s previously announced C$5.9B hostile takeover offer [https://seekingalpha.com/news/4449496-strathcona-resources-makes-c59b-takeover-offer-for-meg-energy] for MEG, whose board rejected [https://seekingalpha.com/news/4458456-meg-energy-s-board-rejects-strathcona-s-4_2b-takeover-offer] the offer in June.

Strathcona said on Friday that following the sale of MEG, it will be the only pure play oil company in North America producing more than 50 Mbbls / d without mines or refineries.

The company also said it intends to pay a special distribution of $10.00 per share to all common shareholders.

MORE ON STRATHCONA RESOURCES LTD.

* Strathcona Resources: MEG Energy Or A $10 Dividend? Cenovus Holds The Answer [https://seekingalpha.com/article/4814872-strathcona-resources-meg-energy-or-10-dividend-cenovus-holds-answer]
* Cenovus Energy CEO won't increase offer for MEG Energy - Bloomberg [https://seekingalpha.com/news/4493784-cenovus-energy-ceo-wont-increase-offer-for-meg-energy-bloomberg]
* Strathcona buys $190.8M stake in MEG Energy, opposes Cenovus takeover [https://seekingalpha.com/news/4491526-strathcona-buys-1908m-stake-in-meg-energy-opposes-cenovus-takeover]
* Historical earnings data for Strathcona Resources Ltd. [https://seekingalpha.com/symbol/SCR:CA/earnings]