Strathcona Resources acquires additional MEG Energy shares
Strathcona Resources has acquired an additional 6.66 million shares of MEG Energy for approximately C$190.8 million, increasing its ownership to about 11.8%. Previously, Strathcona held 9.2% of MEG's shares. The company aims to raise its stake to 14.2% and plans to oppose Cenovus Energy's acquisition of MEG, which is valued at C$7.9 billion, after MEG rejected Strathcona's C$6 billion bid.
Sept 2 (Reuters) - Canadian oil and gas producer Strathcona Resources (SCR.TO) said on Tuesday it has purchased 6.66 million additional common shares of rival MEG Energy (MEG.TO) for about C$190.8 million ($138.09 million).
With this acquisition, Strathcona now owns or controls about 11.8% of MEG’s outstanding shares. Prior to this transaction, it held about 9.2% of the total MEG shares.
Late last month, Strathcona had said it would increase its ownership to about 14.2%, strengthening its position as a significant minority shareholder in MEG.
The company had then also announced its intention to vote against the acquisition of MEG by another rival, Cenovus Energy (CVE.TO) .
Cenovus in August agreed to acquire MEG in a C$7.9 billion cash-and-stock deal, after MEG’s board rejected Strathcona’s lower C$6 billion takeover bid in June.
($1 = 1.3817 Canadian dollars)
