CALGARY – Strathcona Resources Ltd. is raising its takeover offer for MEG Energy Corp., offering an alternative to MEG’s friendly deal to be acquired by Cenovus Energy Inc.
Under the proposal, Strathcona is offering 0.80 of a share per MEG share it does not already own. It values the proposal at $30.86 per share, up from its earlier bid valued at $28.02 per share.
Under the Cenovus deal, MEG shareholders can receive $27.25 in cash or 1.325 Cenovus common shares for each MEG share, subject to a limit of $5.2 billion in cash and 84.3 million Cenovus shares available.
The Cenovus deal must be approved by a two-thirds majority vote by MEG shareholders expected to be held in October. Strathcona says it intends to vote its 14.2 per cent interest in MEG against the deal.
Cenovus and MEG have side-by-side oilsands properties at Christina Lake south of Fort McMurray, Alta.
MEG shares were up 38 cents at $28.73 in early trading on the Toronto Stock Exchange on Monday.
This report by The Canadian Press was first published Sept. 8, 2025.
Companies in this story: (TSX:MEG, TSX:SCR, TSX:CVE)
