Latest news with #StrathconaResourcesLtd.
Global News
16-05-2025
- Business
- Global News
Strathcona Resources makes stock-and-cash takeover offer for MEG Energy
Strathcona Resources Ltd. is making an unsolicited takeover offer for oilsands producer MEG Energy Corp. that values the company at about $5.9 billion. The stock-and-cash offer comes after Strathcona, which already owns about a 9.2 per cent stake in MEG, says it sent a takeover offer to the MEG board of directors in April, but was rejected earlier this week. 'Strathcona respects the MEG board's right to dismiss any offer made for MEG, and it has no reason to believe that its decision to dismiss Strathcona's proposal was not made in good faith,' the company said in a late Thursday news release. 'However, Strathcona believes the benefits of a combination of Strathcona and MEG are significant enough that MEG Shareholders should have the opportunity to decide for themselves.' MEG said Friday that its board of directors will consider and evaluate the Strathcona offer once it has been received and urged shareholders to take no action until it has made a recommendation. Story continues below advertisement Strathcona is offering 0.62 of a Strathcona share and $4.10 in cash per MEG share in the proposal worth $23.27 per MEG share based on the closing price of its shares on Thursday. MEG shares shot higher in early trading Friday, topping the implied value of the takeover offer and suggesting investors believed a higher bid might be possible. Get breaking National news For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen. Sign up for breaking National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy MEG shares were up $4.61 or about 22 per cent at $25.91 in trading on the Toronto Stock Exchange. View image in full screen Shares in MEG Energy jumped higher in early morning trading on the TSX on Friday on news of a $5.9 billion takeover offer from Strathcona Resources Ltd.3. THE CANADIAN PRESS/Frank Gunn Strathcona said it is ready to engage with the MEG board and would also support a strategic alternatives process to determine if a superior transaction is available. 'Strathcona would be willing to participate constructively and in good faith in such a process, including signing a mutual confidentiality agreement to share non-public information, provided it is not required to sign a standstill agreement,' the company said. Story continues below advertisement Strathcona said a combination with MEG would create Canada's fifth largest oil producer and fourth largest steam-assisted gravity drainage producer, with among the largest proved oil reserves in North America. It said it has identified $175 million in annual synergy opportunities, including $50 million in overhead reduction costs, if the deal goes ahead. The offer came as Strathcona raised its quarterly dividend and reported a first-quarter profit of $205.3 million or 96 cents per diluted share, up from $100.6 million or 47 cents per diluted share a year earlier. The company said it will now pay a quarterly dividend of 30 cents per share, up from 26 cents per share. Oil and natural gas revenue totalled $1.33 billion, up from $1.17 billion in the first quarter of 2024. Production for the quarter totalled 194,609 barrels of oil equivalent per day for the quarter ended March 31, up from 185,122 a year earlier. On Wednesday, Strathcona announced a series of three agreements to sell its assets in the Montney region valued at a total of $2.84 billion in a move that will make it a pure-play heavy oil company.
Hamilton Spectator
16-05-2025
- Business
- Hamilton Spectator
Strathcona Resources makes stock-and-cash takeover offer for MEG Energy
CALGARY - Strathcona Resources Ltd. is making a takeover stock-and-cash offer for oilsands producer MEG Energy Corp. that values the company at about $5.9 billion. The offer comes after Strathcona, which already owns about a 9.2 per cent stake in MEG, says it sent a takeover offer to the MEG board of directors in April, but was rejected earlier this week. 'Strathcona respects the MEG board's right to dismiss any offer made for MEG, and it has no reason to believe that its decision to dismiss Strathcona's proposal was not made in good faith,' the company said in a news release. 'However, Strathcona believes the benefits of a combination of Strathcona and MEG are significant enough that MEG Shareholders should have the opportunity to decide for themselves.' MEG said Friday that its board of directors will consider and evaluate the Strathcona offer once it has been received and urged shareholders to take no action until it has made a recommendation. Strathcona is offering 0.62 of a Strathcona share and $4.10 in cash per MEG share in the proposal worth $23.27 per MEG share based on the closing price of its shares on Thursday. MEG shares closed at $21.30 on the Toronto Stock Exchange on Thursday. Strathcona said it is ready to engage with the MEG board and would also support a strategic alternatives process to determine if a superior transaction is available. 'Strathcona would be willing to participate constructively and in good faith in such a process, including signing a mutual confidentiality agreement to share non-public information, provided it is not required to sign a standstill agreement,' the company said. Strathcona said a combination with MEG would create Canada's fifth largest oil producer and fourth largest steam-assisted gravity drainage producer, with among the largest proved oil reserves in North America. It said it has identified $175 million in annual synergy opportunities, including $50 million in overhead reduction costs, if the deal goes ahead. On Wednesday, Strathcona announced a series of three agreements to sell its assets in the Montney region valued at a total of $2.84 billion in a move that will make it a pure-play heavy oil company. It also said it has bought the Hardisty crude-by-rail rail terminal in Alberta for about $45 million. This report by The Canadian Press was first published May 16, 2025. Companies in this story: (TSX:SCR, TSX:MEG)
Yahoo
16-05-2025
- Business
- Yahoo
NewsAlert: Strathcona Resources makes takeover offer for MEG Energy
CALGARY — Strathcona Resources Ltd. is making a takeover stock-and-cash offer for MEG Energy Corp. that values the company at about $5.9 billion. Strathcona is offering 0.62 of a Strathcona share and $4.10 in cash per MEG share in the proposal, worth $23.27 per MEG share based on the closing price of its shares on Thursday. More coming. Companies in this story: (TSX:SCR, TSX:MEG) 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
Winnipeg Free Press
15-05-2025
- Business
- Winnipeg Free Press
Strathcona Resources selling Montney assets for $2.84 billion
CALGARY – Strathcona Resources Ltd. has signed a series of three agreements to sell its assets in the Montney region valued at a total of $2.84 billion. The company says once the deals are complete it will be a pure-play heavy oil company. Strathcona says Arc Resources Ltd. will acquire its Kakwa asset in a deal valued at $1.7 billion, while Tourmaline Oil Corp. will buy its Groundbirch asset for $291.5 million in Tourmaline shares. Strathcona is also selling its Grande Prairie asset in an agreement valued at $850 million. It did not identify the buyer. The company also said it has bought the Hardisty rail terminal in Alberta for about $45 million. It says the terminal is the largest crude-by-rail terminal in Western Canada. This report by The Canadian Press was first published May 15, 2025. Companies in this story: (TSX:SCR, TSX:ARX, TSX:TOU)
Yahoo
15-05-2025
- Business
- Yahoo
Strathcona Resources selling Montney assets for $2.84 billion
CALGARY — Strathcona Resources Ltd. has signed a series of three agreements to sell its assets in the Montney region valued at a total of $2.84 billion. The company says once the deals are complete it will be a pure-play heavy oil company. Strathcona says Arc Resources Ltd. will acquire its Kakwa asset in a deal valued at $1.7 billion, while Tourmaline Oil Corp. will buy its Groundbirch asset for $291.5 million in Tourmaline shares. Strathcona is also selling its Grande Prairie asset in an agreement valued at $850 million. It did not identify the buyer. The company also said it has bought the Hardisty rail terminal in Alberta for about $45 million. It says the terminal is the largest crude-by-rail terminal in Western Canada. This report by The Canadian Press was first published May 15, 2025. Companies in this story: (TSX:SCR, TSX:ARX, TSX:TOU) The Canadian Press Sign in to access your portfolio
