Canadian oil producer MEG Power Corp. postponed a shareholder vote on a C$7.6 billion ($5.4 billion) takeover proposal by Cenovus Power Inc. till subsequent week to offer it time to reveal extra data on asset gross sales.
MEG Chairman James McFarland adjourned an investor assembly on Thursday night in Calgary after hours of delay, asserting that will probably be held as a substitute on Nov. 6. The transfer ended a weird day that noticed McFarland defer a vote that had been scheduled for 9 a.m. Calgary time due to a regulatory matter that the corporate wouldn’t clarify.
It’s the third time MEG has needed to set a brand new date for the assembly. MEG shares fell 1.1% to shut at C$29.48 in Toronto.
- Advertisement -
Cenovus’s deal for MEG is about to unite two of the bigger crude producers in Canada’s oil sands area, however the transaction has been stuffed with twists. On Monday, the businesses introduced that Cenovus was altering its provide for a second time — this time boosting it to C$30 in money or 1.255 Cenovus shares for every MEG share — as a way to safe the help of MEG’s largest shareholder, Strathcona Assets Ltd.
As a part of that announcement, Cenovus stated it would promote some belongings, together with heavy oil manufacturing in Saskatchewan, to Strathcona for C$150 million. MEG shareholders, who’re being provided Cenovus shares, will now get extra time to guage data on that aspect deal.
The brand new deadline for submitting votes by proxy is the morning of Nov. 5, McFarland stated.
Shareholders might be voting after a five-month battle for MEG, an oil sands producer that produces about 100,000 barrels a day of crude from its Christina Lake website in northeast Alberta. Strathcona had kicked off the bidding struggle in Might with an unsolicited bid that was opposed by the MEG board.
Strathcona, proprietor of 14% of MEG shares, then pledged to oppose the Cenovus deal. That compelled Cenovus to spice up its provide twice and MEG to delay a shareholder vote that was imagined to occur within the first half of October.
Generated by readers, the feedback included herein don’t replicate the views and opinions of Rigzone. All feedback are topic to editorial evaluation. Off-topic, inappropriate or insulting feedback might be eliminated.
