(BOE Report) – CALGARY – Strathcona Sources Ltd. has begun its formal takeover bid for fellow oilsands producer MEG Power.
Its provide contains 0.62 of a standard share of Strathcona and $4.10 in money for every MEG share it doesn’t already personal.
The provide is open till Sept.
MEG says its board and authorized and monetary advisers will think about the provide, and {that a} particular committee of impartial administrators will help.
The goal firm is urging shareholders to take no motion till it has made a advice, which it expects to do inside 15 days.
Strathcona additionally introduced an fairness dedication letter with Waterous Power Fund, whose CEO Adam Waterous is govt chairman of Strathcona.
The fund owns virtually 80 per cent of Strathcona shares, and the brand new funding is price about $662 million.
“WEF’s main additional funding in Strathcona displays our view that greater than eight years into constructing Strathcona, our greatest years are in entrance of us. As a part of the provide, we’re asking MEG shareholders to affix us as fellow shareholders in Strathcona and belief the Strathcona workforce as stewards of their capital,” Waterous stated in a launch Friday.
“We subsequently consider it is crucial that we eat our personal cooking, making certain nobody will likely be extra targeted on rising Strathcona’s worth past present ranges than WEF. We firmly consider Strathcona represents compelling worth at this value with a big margin of security, and that we and the companions in our fund will do very nicely over the long term.”
This report by The Canadian Press was first revealed Could 30, 2025.
