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Strathcona Resources seeks to raise its stake in MEG Energy to 14.2%

Strathcona Resources plans to acquire an additional 5% of MEG Energy’s shares and confirms its opposition to the company’s sale to Cenovus Energy.

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Strathcona Resources Ltd. announced its intention to increase its stake in MEG Energy Corp. from 9.2% to approximately 14.2%, subject to market conditions. The transaction will be carried out in compliance with Canadian securities laws. Shares will be purchased on the market as opportunities arise.

The company currently holds 23.4 million common shares of MEG Energy, representing about 9.2% of the issued and outstanding shares. Under the applicable regulatory framework, Strathcona is permitted to acquire up to an additional 5% while its tender offer remains active. This initiative marks a reinforcement of its strategy toward a stronger position in MEG Energy.

Declared opposition to Cenovus Energy’s acquisition

Strathcona Resources also announced that it would vote against the resolution to approve the acquisition of MEG Energy by Cenovus Energy Inc. This decision applies both to the shares it already holds and those it may acquire. Approval of the transaction requires at least 66 2/3% of the votes cast by MEG shareholders present or represented by proxy at the special meeting scheduled for October 9.

Discussions with other MEG shareholders preceded this stance. Strathcona’s strategy signals increasing tension among stakeholders over MEG Energy’s future. No details were provided regarding a possible competing offer or changes to the existing terms.

Acquisition terms and regulatory obligations

Strathcona specified that the purchase price of MEG shares could differ from the valuation included in its current offer, which proposes 0.62 of a Strathcona share and $4.10 in cash per MEG share. Acquisitions will proceed as soon as possible, depending on market conditions and the applicable legal frameworks.

The company will be required to issue a news release at the close of each trading day on which shares are purchased, disclosing the number of MEG shares acquired and other information mandated by Canadian and United States securities laws. This process ensures full transparency regarding the operations carried out in this capital increase.

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