Latest news with #WaterousEnergyFund
Reuters
17 hours ago
- Business
- Reuters
Strathcona supports MEG's strategic alternative process after rejected C$6 billion bid
June 20 (Reuters) - Canadian oil and gas producer Strathcona ( opens new tab said on Friday it supports MEG Energy's ( opens new tab decision to initiate a strategic alternatives process and explore potential deals after MEG urged shareholders to reject Strathcona's C$6 billion ($4.38 billion) hostile takeover bid. On Monday, MEG Energy advised shareholders to reject the offer, describing it as inadequate and not in their best interests. The board also launched a strategic review to consider alternatives that could deliver greater value than MEG's current plan to remain a standalone company. Strathcona, which is backed by Calgary-based private equity firm Waterous Energy Fund, said it remains willing to participate in the alternatives process and looks forward to constructive engagement with MEG's board Strathcona said it believes it is the only peer company which would provide meaningful overhead synergies if a deal is reached. Since 2020, Strathcona, has become one of the fastest-growing oil companies in North America through a series of acquisitions. The all-cash-and-stock offer announced by Strathcona in May, would combine two of Canada's largest pure-play thermal oil sands operators and make Strathcona the country's fifth-largest oil producer. ($1 = 1.3691 Canadian dollars)
Yahoo
17 hours ago
- Business
- Yahoo
Strathcona supports MEG's strategic alternative process after rejected C$6 billion bid
(Reuters) -Canadian oil and gas producer Strathcona said on Friday it supports MEG Energy's decision to initiate a strategic alternatives process and explore potential deals after MEG urged shareholders to reject Strathcona's C$6 billion ($4.38 billion) hostile takeover bid. On Monday, MEG Energy advised shareholders to reject the offer, describing it as inadequate and not in their best interests. The board also launched a strategic review to consider alternatives that could deliver greater value than MEG's current plan to remain a standalone company. Strathcona, which is backed by Calgary-based private equity firm Waterous Energy Fund, said it remains willing to participate in the alternatives process and looks forward to constructive engagement with MEG's board Strathcona said it believes it is the only peer company which would provide meaningful overhead synergies if a deal is reached. Since 2020, Strathcona, has become one of the fastest-growing oil companies in North America through a series of acquisitions. The all-cash-and-stock offer announced by Strathcona in May, would combine two of Canada's largest pure-play thermal oil sands operators and make Strathcona the country's fifth-largest oil producer. ($1 = 1.3691 Canadian dollars)
Yahoo
4 days ago
- Business
- Yahoo
MEG Energy's board urges shareholders to reject Strathcona's $4.42 billion offer
(Reuters) -Canadian oil producer MEG Energy on Monday urged its shareholders to reject a nearly C$6 billion ($4.42 billion) hostile takeover offer from Strathcona Resources, calling the bid inadequate and not in their best interest. The board also launched a strategic review to explore alternatives that could lead to a better offer than MEG's current plan to be a standalone company. In May, the Canadian oil and gas producer Strathcona Resources said it planned to launch a hostile takeover bid for MEG Energy, valuing its rival's shares at C$23.27 per share. MEG's last close was C$25.71. Later, MEG advised its shareholders to not take action on the unsolicited takeover bid. Since 2020, Strathcona, owned by Calgary-based private equity firm Waterous Energy Fund (WEF), has become one of the fastest-growing oil companies in North America through a series of acquisitions. If the takeover were to go through, WEF would own 51% stake in the combined company, making it a vehicle for WEF and its investors to sell their material ownership over time, MEG Energy said. "This selling pressure, or even the perceived risk of such selling pressure, will place immediate and significant downward burden on the share price of the combined company for a prolonged period of time," the company said in a statement. Strathcona Resources did not immediately respond to Reuters request for comment. ($1 = 1.3563 Canadian dollars) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CTV News
4 days ago
- Business
- CTV News
MEG Energy's board urges shareholders to reject Strathcona's $6 billion offer
Canadian oil producer MEG Energy on Monday urged its shareholders to reject a nearly $6 billion hostile takeover offer from Strathcona Resources, calling the bid inadequate and not in their best interest. The board also launched a strategic review to explore alternatives that could lead to a better offer than MEG's current plan to be a standalone company. In May, the Canadian oil and gas producer Strathcona Resources said it planned to launch a hostile takeover bid for MEG Energy, valuing its rival's shares at $23.27 per share. MEG's last close was $25.71. Later, MEG advised its shareholders to not take action on the unsolicited takeover bid. Since 2020, Strathcona, owned by Calgary-based private equity firm Waterous Energy Fund (WEF), has become one of the fastest-growing oil companies in North America through a series of acquisitions. If the takeover were to go through, WEF would own 51 per cent stakein the combined company, making it a vehicle for WEF and its investors to sell their material ownership over time, MEG Energy said. 'This selling pressure, or even the perceived risk of such selling pressure, will place immediate and significant downward burden on the share price of the combined company for a prolonged period of time,' the company said in a statement. Strathcona Resources did not immediately respond to Reuters request for comment. --- Reporting by Pooja Menon in Bengaluru; Editing by Leroy Leo
Globe and Mail
30-05-2025
- Business
- Globe and Mail
Waterous fund would own more than half of company formed from Strathcona's takeover of MEG Energy
An investment fund led by Strathcona Resources Ltd.'s SCR-T executive chairman will control more than half of the shares of the oil company that would result from Strathcona's $5.9-billion takeover of MEG Energy Corp. MEG-T If Strathcona's hostile bid for the rival oil sands producer is successful, Adam Waterous's Waterous Energy Fund will acquire $662-million of stock in the combined company to put its stake at 51 per cent, according to details of the offer released in the formal bid document on Friday. WEF currently owns 79.6 per cent of Strathcona shares. Strathcona announced its unsolicited cash-and-stock offer for MEG on May 15, saying the two oil sands-producing entities are highly complementary in geography, operations, reserve-life indexes and profit margins. Why Canadian energy is a secret bargain, spurring a hostile takeover bid in the oil sands Mr. Waterous said MEG shareholders would benefit in three ways: through a 9 per cent premium over the value of their shares, as measured when the deal was announced, higher earnings and cash flow per share and an improvement in credit rating to investment-grade status, which will reduce the cost of capital. 'This is the financial Abominable Snowman – often talked about but never seen,' he said in an interview. He pointed out that WEF's participation in the deal, at a cost of $30.92 a share, would represent the largest equity investment in the Canadian oil patch in more than a decade. 'And we think we're going to get private-equity rates of return on that,' he said. Strathcona is offering MEG shareholders 0.62 of a Strathcona share and $4.10 in cash for each MEG share. The bid will remain open until Sept. 15. MEG shares were down 2 per cent at $24.11 on the Toronto Stock Exchange on Friday. Strathcona was up 2 per cent at $29.49, putting the value of its offer at $22.38, suggesting investors are still wagering on a higher offer. Analysts have speculated some of the country's large established oil sands companies may consider riding in as white knights. In a statement on Friday, MEG urged its shareholders not to tender to the Strathcona bid. The takeover target said it had formed a special committee of its board, which will evaluate the offer with the company's financial advisers. It plans to respond by June 16 days with a recommendation. It said it remains committed to its long-term strategy and is confident that it will create value. Officials declined to comment further. According to the bid circular, Strathcona amassed a 9.2 per cent interest in MEG through share purchases in the first and second quarters of this year. Mr. Waterous approached MEG director Jeff McCaig on April 10 to discuss the merits of a potential deal, and on April 28, sent a formal proposal outlining terms and conditions, including the price. On May 13, MEG Chairman Jim McFarland wrote back to say the company was not interested. Strathcona went public with its bid two days later. When they rejected the friendly approach, MEG's directors did not know that Strathcona was close to announcing a series of asset sales to focus its operations on heavy oil and reduce its debt, Mr. Waterous said. Just before announcing its bid, it sold Montney natural gas assets in two deals for total proceeds of $2.84-billion. 'MEG has not yet had the opportunity to evaluate our offer. So this is the first time. Now that they see we are such a lookalike business to them, a bigger look alike business, I think it will be much more straightforward for the board to be able to see the merits of the financial triple-jump,' he said.
