Cenovus Energy acquires 8.5% stake in MEG Energy

[Oilsands Refinery]
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Cenovus Energy (NYSE:CVE [https://seekingalpha.com/symbol/CVE]) said Tuesday it has acquired [https://seekingalpha.com/pr/20264013-cenovus-energy-acquires-8_5-percent-of-meg-energy-common-shares] 21,723,540 common shares of MEG Energy (OTCPK:MEGEF [https://seekingalpha.com/symbol/MEGEF]), giving it control over common shares representing an 8.5% stake in the company, having acquired 254,378,035 MEG common shares issued and outstanding since October 8.

Cenovus (NYSE:CVE [https://seekingalpha.com/symbol/CVE]) acquired the MEG Energy (OTCPK:MEGEF [https://seekingalpha.com/symbol/MEGEF]) shares as part of its previously announced transaction; last week [https://seekingalpha.com/news/4502554-cenovus-reports-record-q3-production-increased-price-to-acquire-meg-energy], it increased its takeover bid to a cash-and-stock offer valuing MEG at C$29.80/share, or C$7.6 billion, and caused Strathcona Resources to drop its own bid [https://seekingalpha.com/news/4503418-strathcona-terminates-take-over-bid-for-meg-energy].

MEG’s (OTCPK:MEGEF [https://seekingalpha.com/symbol/MEGEF]) board had turned down an all-stock offer from Strathcona, which owns 14% of the company, and shareholders are scheduled to vote on Cenovus’ (CVE [https://seekingalpha.com/symbol/CVE]) offer on October 22, requiring two-thirds support for the takeover to succeed.

MORE ON CENOVUS ENERGY AND MEG ENERGY

* Cenovus Ups The Ante For MEG Energy [https://seekingalpha.com/article/4828616-cenovus-ups-the-ante-for-meg-energy]
* Cenovus Energy: In Defense Of The Bid [https://seekingalpha.com/article/4824592-cenovus-energy-in-defense-of-bid]
* Cenovus Energy: A Great Canadian O&G Company To Buy [https://seekingalpha.com/article/4824309-cenovus-energy-a-great-canadian-o-and-g-company-to-buy]