Cenovus Energy purchases additional shares in MEG Energy

Cenovus Energy has increased its stake in MEG Energy to 9.8%.

Cenovus purchased 21.7 million shares on Tuesday, improving its position in acquiring one of Canada's largest pure-play oil and sands companies before the shareholder vote on October 22.

Cenovus, which acquired MEG earlier this month, increased their bid from C$2.35 per share to C$29.80, calling it "their best and final offer".

Strathcona Resources has abandoned its bid to acquire MEG after Cenovus made the latest offer. This ends a battle that lasted a whole month for Canada's Oil Sands Company.

The MEG board approved Cenovus revised bid of C$8.6 Billion ($6.11 Billion), including debt. However, two-thirds approval of investors is required to complete the deal.

The takeover drama began in May, when Strathcona made a hostile offer of C$5,93 billion for MEG. Cenovus responded with a C$7.9-billion cash-and stock-offer in August.

MEG's Christina Lake project is a valuable asset due to its long life expectancy, cost-efficient operation and future growth potential. (Reporting from Pranav Mathur, Bengaluru. Editing by Vijay Kishore.)

(source: Reuters)