Strathcona Resources Ltd. Web Image
Cenovus requires two-thirds shareholder approval at Oct. 9 meeting
CALGARY — Strathcona Resources Ltd. has increased its stake in MEG Energy Corp. and confirmed it will oppose the company’s proposed takeover by Cenovus Energy Inc.
The Calgary-based oil producer said Tuesday it purchased more than 6.6 million MEG shares for roughly $190.8 million, bringing its total holdings to just over 30 million shares, or about 11.8 per cent of MEG’s outstanding stock. Before the transaction, Strathcona held a 9.2 per cent stake.
Strathcona said it intends to vote all of its shares against MEG’s planned acquisition by Cenovus. The deal, which requires two-thirds approval from shareholders, is set for a vote at a special meeting on Oct. 9.
The company launched its own bid in May to acquire all remaining MEG shares it does not own. That offer includes 0.62 of a Strathcona share plus $4.10 in cash for each MEG share.
Strathcona said its purchase is in line with earlier plans to increase its stake by up to five per cent. The company said full details of the acquisition will be available through securities filings on SEDAR+.
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