Cenovus Energy bought more shares in MEG Energy, raising its stakes to 9.8% in the Canadian oil sand company.
This follows Cenovus’s Tuesday purchase of 21.7 million shares, strengthening its position to acquire one of Canada’s last large pure-play oil sands companies ahead of the October 22 shareholder vote.
Earlier this month, Cenovus increased its bid by C$2.35 to C$29.80 per share to acquire MEG, stating it as their “best and final” offer.
Strathcona Resources abandoned its takeover bid for MEG following Cenovus’ latest offer, ending a month-long battle for Canada’s oil sands company.
While the MEG board has approved Cenovus’ revised bid of C$8.6 billion ($6.11 billion), including debt, the deal requires approval from two-thirds of the investors to proceed.
The takeover saga began in May when Strathcona launched a C$5.93 billion hostile bid for MEG, which Cenovus countered with a C$7.9 billion cash-and-stock offer in August.
MEG’s Christina Lake oil sands project remains a key asset owing to its long reserve life, cost-efficient operations and potential for future production growth.
(Reporting by Pranav Mathur in Bengaluru; Editing by Vijay Kishore)