A vote scheduled for Thursday by shareholders of MEG Energy could bring the drawn-out battle to acquire the Canadian oil sands producer to an end.
The following is a timeline of events this year.
May 15 – Canadian oil and gas producer Strathcona Resources says it will initiate a hostile takeover bid for MEG in a deal that values the company at C$5.93 billion ($4.25 billion).
June 16 – MEG’s board urges the company’s shareholders to reject Strathcona’s bid, calling it inadequate. The board says it will launch a strategic review to explore alternatives.
August 22 – MEG says it has agreed to be acquired by larger oil sands peer Cenovus Energy in a C$7.9 billion cash-and-stock deal.
August 28 – Strathcona says it intends to buy more MEG shares, bringing its total ownership in the company to 14.2%. Strathcona says it will use its shares to vote against the Cenovus-MEG deal.
September 8 – Strathcona sweetens its offer to C$30.86 per share, topping the C$27.79 valuation of the Cenovus deal.
September 15 – MEG’s board tells shareholders to reject Strathcona’s new bid and back the Cenovus arrangement.
September 19 – After some MEG shareholders say the deal undervalues the company, Cenovus CEO Jon McKenzie says the offer is “fair and final.”
October 8 – Cenovus hikes its bid by C$2.35 to about C$29.80 per share at the time of offer. The shareholder vote planned for October 9 is postponed.
October 10 – Strathcona says it is terminating its bid for MEG. It accuses MEG’s board of engaging in “anti-competitive actions” by allowing Cenovus to buy more shares in the company to vote for its own deal.
October 21 – MEG’s board postpones the shareholder vote again. Three MEG shareholders say they have filed regulatory complaints over what they view as the board’s attempt to tilt the sales process in Cenovus’ favor.
October 27 – Cenovus says it has struck a deal with Strathcona that will see the smaller company vote its shares in favor of the deal. In exchange, Strathcona will purchase from Cenovus certain heavy oil assets and land in Alberta and Saskatchewan.
October 30 – MEG’s board chair postpones the shareholder meeting until November 6 to allow for additional regulatory disclosures.
October 31 – Cenovus’ CEO says the regulatory inquiry is related to a complaint raised by a former MEG employee who holds approximately 4,000 shares, and is not expected to affect the transaction.
(Reporting by Amanda Stephenson in Calgary Editing by Rod Nickel)