CALGARY – Strathcona Resources Ltd. is making a takeover stock-and-cash offer for MEG Energy Corp. that values the company at about $5.9 billion.
The offer comes after Strathcona says it sent a takeover offer to the MEG board of directors in April, but was rejected earlier this week.
Strathcona says it believes the benefits of a combination of the companies are significant enough that MEG shareholders should have the opportunity to decide for themselves.
It is offering 0.62 of a Strathcona share and $4.10 in cash per MEG share in the proposal worth $23.27 per MEG share based on the closing price of its shares on Thursday.
MEG shares closed at $21.30 on the Toronto Stock Exchange on Thursday.
Strathcona already owns about a 9.2 per cent stake in MEG.
This report by The Canadian Press was first published May 16, 2025.
Companies in this story: (TSX:SCR, TSX:MEG)
