Cenovus Said to Be in Talks With Indigenous Groups for MEG Bid
(Bloomberg) – Cenovus Energy Inc., Canadian King of Petroleum is meeting with local groups in Canada to jointly buy Meg Energy Corp, a manufacturer of an oil sand manufacturer who encounters an undesirable $ 4 billion.
According to people who are familiar with discussions, a group of first nation and metis communities, including Chipewyan Prairie First Nation and Heart Lake First Nation, meet Cenovus to receive a share of $ 2 billion ($ 1.45 billion) in the MEG. He said that the domestic share would be supported by financial support from the federal and provincial governments, and that Genovus would bid for the rest.
A common offer for Meg can be made in early September, but negotiations can be broken down.
E -mails and calls to Genovus were not returned and no calls were made to the first relevant nation groups. Meg did not answer immediately. Natural resources refused to comment on a Canadian E -mail. Alberta local opportunities Corp.
If the agreement was successful, the first major, direct domestic shares in an oil sand manufacturer would marked the purchase of local share. In addition, in the oil -rich region of Northeast Alberta, he would unite two Calgary -based companies with significant operations. Meg’s Christina Lake project contains 200 kilometers (77 miles of square) in the region, and the company has regulatory approvals to produce about 210,000 barrels per day.
Meg was commissioned in May when MEG made an unwanted cash and stock proposal to MEG’s approximately $ 6 billion C. Meg. Strathcona, controlled by former investment banker Adam Waterous, made a proposal after receiving a 9.2% stake in the company. The Meg Board said the shareholders to reject Strathcona’s offer and that it was inadequate. The Board also initiated a strategic investigation that could include finding other offers.
Meg was traded on Tuesday at $ 25.85 c at Toronto at 11:45. This shows that Strathcona’s $ 23,27 c is expected to have a higher bid.
Alberta’s first nations, such as pipelines and tank storage farms to generate revenue, went to large infrastructure projects and sought more property. Canadian energy companies are more frequently partners with communities affected by land projects to get rid of potential environmental and legal opposition.
Cenovus, the third largest Canadian raw manufacturer according to the market value, operates in the Christina Lake area near Meg site. Last year, the company produced approximately 800,000 barrels of equivalents per day – mostly bitumen, natural gas fluids and some traditional oil and natural gas. Financial mission reported that Cenovus had prepared an offer last month.
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