Cenovus Energy Inc. announced it has acquired 21,723,540 common shares of MEG Energy Corp., representing 8.5% of the total outstanding shares of the company. The transaction was executed through the Toronto Stock Exchange and other Canadian alternative markets between October 8 and October 14. MEG Energy currently has 254,378,035 issued and outstanding common shares.
A move aligned with a broader transaction
This acquisition is part of a previously announced transaction between Cenovus Energy and MEG Energy. Although the full details of the transaction have not been made public, Cenovus stated its intention to vote the acquired shares in favour of the deal. The company noted that its stake may change depending on market conditions or other influencing factors.
Cenovus’s strategy appears aimed at deeper integration or increased alignment with MEG Energy. At this stage, Cenovus holds the shares directly or indirectly and exercises control or direction over them. This approach complies with Section 5.4 of National Instrument 62-104 – Take-Over Bids and Issuer Bids from the Canadian Securities Administrators.
Potential future adjustments in ownership
Cenovus also indicated that its ownership level in MEG Energy could increase or decrease depending on market developments and regulatory requirements. This strategic flexibility may allow Cenovus to strengthen its position depending on the outcome of ongoing negotiations.
The transaction comes amid rising consolidation in Canada’s oil sands sector. MEG Energy, an independent producer based in Alberta, is known for its assets in the Christina Lake region. Cenovus, already holding a significant portfolio in that area, could benefit from increased synergies through this stake acquisition.
