The battle for MEG Energy in Canada
The shareholders of MEG Energy will vote on Thursday, which could end the long-running battle for the Canadian oil sands manufacturer.
This is the timeline for events in this year. Strathcona Resources, a Canadian oil and natural gas producer, announces that it will launch a hostile bid to take over MEG. The deal values the company at C$5.93billion ($4.25billion). MEG's Board urges its shareholders to reject Strathcona bid on June 16, calling it inadequate. The board has announced that it will conduct a strategic review in order to look at alternatives.
MEG has announced that it will be acquired by Cenovus Energy, a larger oil sands competitor in a C$7.9billion cash-and stock deal.
Strathcona announces its intention to purchase more MEG stock on August 28, bringing the total of Strathcona's ownership to 14.2%. Strathcona will vote against the Cenovus/MEG merger using its shares. Strathcona increases its offer from C$27.79 per share to C$30.86, a significant increase.
MEG's Board tells shareholders that Strathcona is not the best bidder and they should support Cenovus. Cenovus CEO Jon McKenzie tells MEG shareholders that the deal is fair and final after some MEG investors say it undervalues the business.
Cenovus increases its offer by C$2,35, to approximately C$29.80 a share. The shareholders' vote scheduled for 9 October is postponed. Strathcona announces that it will end its MEG bid on October 10. Cenovus accuses MEG of "anti-competitive" actions by allowing Cenovus buy more shares to vote in favor of its own deal.
MEG's Board postpones again the shareholder vote on October 21. Three MEG shareholders have complained to the regulatory authorities about what they believe is the board's attempts to favor Cenovus in the sale process.
Cenovus announces a deal on October 27 with Strathcona. The smaller company will vote in favor of this deal by voting its shares. Strathcona agrees to purchase heavy oil assets in Alberta and Saskatchewan from Cenovus. MEG's chair of the board postpones its shareholder meeting to November 6 in order to provide additional regulatory disclosures.
Cenovus CEO, October 31: The regulatory inquiry is in relation to a complaint made by an ex-MEG employee who owns approximately 4,000 shares. It is not expected that the inquiry will affect the transaction. Reporting by Amanda Stephenson, Calgary Editing Rod Nickel
(source: Reuters)