General News | Deals - Acquisition, Mergers, Divestitures

Husky Makes Offer for Canadian Oil Sands Co. MEG Energy

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   |    Monday,October 01,2018

Husky has announced a proposal to acquire all of the outstanding shares of MEG Energy for implied total equity consideration of approximately $3.3 billion.

This proposal values MEG at an implied total enterprise value of approximately $6.4 billion, including the assumption of approximately $3.1 billion of net debt. Full details of the offer are below.

MEG has responded that "the MEG Board of Directors will consider and evaluate the Husky offer and related take-over bid circular."

The Offer is open for acceptance until 5 p.m. Eastern Time (3 p.m. Mountain Time) on Wednesday, January 16, 2019.

MEG Asset Map

Proposed Offer Terms

Under the terms of Husky's proposal, each MEG shareholder will have the option to elect to receive consideration per MEG share of $11 in cash or 0.485 of a Husky share, subject to maximum aggregate cash consideration of $1.0 billion and a maximum aggregate number of Husky shares issued of approximately 107 million. The share exchange ratio has been calculated based on Husky's closing share price of $22.68 as of September 28, 2018, the last trading day prior to this proposal, implying a mix of $3.21 in cash plus 0.344 of a Husky share per MEG share on a fully pro-rated basis.

Husky's proposal delivers an immediate 44 percent premium to the 10-day volume-weighted average MEG share price of $7.62 as of September 28, 2018 and a 37 percent premium to MEG's closing price of $8.03 as of that date.

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