Strathcona Resources Ltd. has officially pulled its take-over bid for MEG Energy.
Following the revised agreement between Cenovus Energy and the MEG board of directors, Strathcona believes the conditions to its offer are no longer capable of being satisfied.
Read more: Strathcona Resources looks to purchase MEG Energy
“Strathcona has concluded that the MEG Board’s ability to continuously extend the Cenovus meeting date and continuously allow Cenovus to purchase and vote additional shares, makes an improved offer for MEG impractical and not in the best interests of Strathcona shareholders,” the company said in a press release.
“While Strathcona is disappointed with this outcome, it is pleased that its actions, along with those of its fellow MEG shareholders, delivered something which the MEG Board could not, namely, a more equitable transaction with Cenovus, which allows MEG shareholders to participate more meaningfully in future upside.”
Strathcona also announced the launch of a special distribution of $10 per share to all of its common shareholders. The distribution would be paid in connection with the reorganization of Strathcona’s business into a pure-play heavy oil company and discontinuance of its Montney business segment.
The special distribution requires two-thirds approval from shareholders to move forward.
Read more: Strathcona sells Montney business
