MEG-Cenovus Deal Approved After Delays
Shareholders have approved an $8.6-billion takeover of MEG Energy Corp. by fellow oilsands producer Cenovus Energy Inc. The approval followed a series of delays and two improved bids from Cenovus.
Shareholder Vote Results
More than 86% of shares voted in favor, surpassing the two-thirds majority needed for the deal to pass, MEG chairman James McFarland announced at a special meeting on Thursday. He expressed gratitude to shareholders for their
“patience over the past couple of weeks.”
Delays and Regulatory Issues
The vote meeting was originally scheduled for October 9 but was delayed twice after Cenovus revised its offer to gain better shareholder support. A final postponement occurred last week due to a last-minute regulatory complaint, pushing the vote to Thursday.
Background of the Takeover Battle
The acquisition attempt began in April when Strathcona Resources Ltd. made a cash-and-stock bid for MEG. MEG’s board rejected Strathcona’s offer calling it
“opportunistic”and encouraged shareholders to reject it while seeking better proposals.
Key Facts
- The deal value: $8.6 billion
- Shareholder approval: over 86% in favor
- Multiple delays due to bid adjustments and regulatory review
Author’s summary: The $8.6 billion Cenovus takeover of MEG Energy finally secured shareholder approval after numerous bidding adjustments and regulatory hurdles over several months.