MEG Energy Corp. announced that its shareholders have approved the merger plan with Cenovus Energy Inc., with 86.15% of votes cast in favour during a special meeting held this week. The transaction, presented as a plan of arrangement, is expected to close in the coming weeks, pending final court approvals and other customary closing conditions.
Decisive support from minority shareholders
Excluding shares held by Strathcona Resources Ltd. and its affiliates, 83.35% of the remaining votes supported the transaction. This “majority of the minority” vote was conducted in accordance with Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions, initiated by the MEG Energy Board of Directors to ensure fairness in the process.
The positive vote result is a key endorsement of the multi-billion-dollar deal, which will enable Cenovus to expand its footprint in Alberta’s oil sands. The proposed merger will also allow MEG to integrate into a broader portfolio of oil assets under a consolidated energy player.
Next step: court approval
A final application is expected to be submitted to the Court of King’s Bench of Alberta to obtain judicial authorisation for the transaction. This hearing is scheduled for mid-November. According to the parties involved, a previous dispute with a MEG shareholder has been resolved amicably, and no other notices of opposition have been submitted to date.
Subject to the Court’s decision and the satisfaction of remaining regulatory conditions, the Cenovus acquisition could be finalised shortly. No specific date has been announced, but both companies state that closing is expected before the end of the month.
