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Strathcona Resources (OTCPK:STHRF) said late Thursday it plans to launch a takeover bid for Canadian oil and gas producing peer MEG Energy (OTCPK:MEGEF) that values the company at ~C$5.9B (US$4.25B), in a deal that would create the country’s fifth-largest oil producer.
Strathcona (OTCPK:STHRF) offered to buy all MEG Energy’s (OTCPK:MEGEF) issued and outstanding common stock for 0.62/share and C$4.10/share in cash, which it said represents a total consideration of C$23.27 per MEG share, a premium of 9.3% to MEG Energy’s closing price on May 15.
Strathcona (OTCPK:STHRF) said it made a formal takeover proposal to MEG Energy’s (OTCPK:MEGEF) board on April 28, which was rejected on May 13; the company said it believes the benefits of a combination are significant enough that MEG shareholders should be able to decide for themselves.
source: msn
