Strathcona rises on plan to launch $4.25 billion hostile bid for MEG Energy

Strathcona Resources

16/05/2025 15:09

** Shares of Canadian oil and gas producer Strathcona SCR.TO rise ~14% to C$30.92

** Company plans to launch a C$5.93 billion ($4.25 billion) hostile takeover bid for rival MEG Energy MEG.TO

** MEG shares down 1.7% at C$21.30

** SCR says it first made an offer to MEG's board on April 28, but was turned down on May 13

** On Friday, MEG said its board will review the offer and urged shareholders to take no action for now

** SCR is offering 0.62 of its share and C$4.10 in cash for each MEG share, valuing the bid at C$23.27/share — a 9.3% premium to MEG's last closing price

** If the deal goes through, MEG shareholders would own 37.8% of the combined company

** Desjardins analysts say the offer is highly unlikely to be accepted, adding that the "modest" premium would likely attract competing offers

** Including session's moves, shares of SCR down 6.7% ad MEG up 10.5% YTD

 (Reporting by Katha Kalia in Bengaluru)

 ((Katha.Kalia@thomsonreuters.com))