Strathcona Resources Ltd. has announced the purchase of more MEG common shares while announcing their intention to vote against the acquisition of MEG by Cenovus Energy.
Read more: Cenovus Energy to acquire MEG Energy
The announcement that Strathcona purchased 6,664,400 common shares of MEG Energy was made Sept. 2 for approximately $190.8 million.
Strathcona paid an average of $28.64 per share. Prior to this purchase, Strathcona owned, directly or indirectly and exercised control or direction over, over 23,400,000 MEG shares which represents approximately 9.2 per cent of the issued and outstanding shares.
With the most recent acquisition Strathcona’s up to 30,043,400 MEG shares which represents approximately 11.8 per cent of the issued and outstanding MEG shares.
Strathcona says they plan to vote against the merger.
“Strathcona intends to vote its MEG Shares (including those it currently holds and subsequently acquires) against the resolution to approve the acquisition of MEG by Cenovus Energy Inc. (the “Cenovus Transaction“), which requires approval by at least 66 and 2/3 per cent of the votes cast by MEG shareholders,” the company said in a press release.
The vote is scheduled to take place at a special meeting of MEG shareholders scheduled to be held on Oct. 9.
Read more: Strathcona sells Montney business
