(BOE Report) – Canadian oil and fuel producer Strathcona Assets stated on Tuesday it has bought further 6.66 million frequent shares of rival MEG Power for about C$190.8 million ($138.09 million).
With this acquisition, Strathcona now owns or controls about 11.8% of MEG’s excellent shares. Previous to this transaction, it held about 9.2% of the overall MEG shares.
The best value paid for the MEG shares bought by Strathcona on Tuesday was C$28.80 apiece.
Late final month, Strathcona had stated it will improve its possession to about 14.2%, strengthening its place as a major minority shareholder in MEG.
The corporate had then additionally introduced its intention to vote in opposition to the acquisition of MEG by one other rival, Cenovus Power.
Cenovus in August agreed to amass MEG in a C$7.9 billion cash-and-stock deal, after MEG’s board rejected Strathcona’s decrease C$6 billion takeover bid in June.
MEG has set October 9 for a shareholder vote on its proposed take care of Cenovus. Whereas its board has authorized the supply, it wants assist from at the very least two-thirds of buyers to undergo. The deal is anticipated to shut early within the fourth quarter of 2025.
Strathcona’s government chair, Adam Waterous, had informed Reuters in August that the corporate would proceed to have interaction with MEG shareholders earlier than the September 15 tender deadline for its supply.
Since 2020, Strathcona, backed by Calgary-based personal fairness agency Waterous Power Fund, has turn out to be one of many fastest-growing oil corporations in North America via a collection of acquisitions.
(Reporting by Pooja Menon in Bengaluru; Modifying by Shilpi Majumdar)
