Strathcona Resources makes stock-and-cash takeover offer for MEG Energy

Published: 2025-05-16 06:47:07 ET SCR.TO

Published on 05/16/2025 at 06:47

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)