Canada-based Strathcona Resources has increased its bid to acquire oil sands producer MEG Energy, offering 0.80 of a common share for each MEG share, valuing MEG at C$30.86 per share. The revised bid represents an 11% premium over MEG’s deal with Cenovus Energy and a 10% increase from Strathcona’s initial offer.

Strathcona’s revised offer includes plans for a special distribution of C$2.14bn to its shareholders post-takeover. If successful, this distribution would amount to C$5.22 per Strathcona share, and if the bid fails, it would be around C$10 per share for current Strathcona shareholders.

Post-takeover, Strathcona expects to have 410 million shares outstanding and C$3bn in net debt. Ownership of Strathcona would be divided with 48% held by Waterous Energy Fund and Strathcona insiders, 9% by existing Strathcona shareholders, and 43% by MEG shareholders.

MEG’s special committee and board are reviewing Strathcona’s revised offer and will respond by 15 September 2025. BMO Capital Markets and Burnet, Duckworth & Palmer are advising MEG, while RBC Capital Markets and Norton Rose Fulbright Canada are counseling the special committee.

Read more at Yahoo Finance: Canada’s Strathcona raises MEG Energy takeover bid