Husky granted regulatory approvals for hostile takeover of MEG Energy

On Tuesday, Husky announced it has met all regulatory requirements for its “full and fair” offer to buy Calgary-based MEG Energy.  MEG Energy photo.

MEG Energy calls on shareholders to reject Husky’s offer

On Tuesday, Husky Energy reported it has met all regulatory requirements for its “full and fair” offer to buy Calgary-based oil sands producer MEG Energy.

Husky says it has been granted approval for the takeover under the Investment Canada Act.

“Receiving regulatory approvals is a significant step toward realizing this compelling opportunity,” said CEO Rob Peabody in a press release.

“Our proposal offers an enhanced shareholder return proposition with much lower risk. Together, Husky and MEG will create a stronger, more resilient Canadian energy company.”

On its website, MEG Energy calls for its shareholders to reject the Husky offer. “MEG’s business has significantly more intrinsic value than Husky’s offer. The Board unanimously recommends that shareholders reject the offer and do not tender shares.”

According to Husky, it is varying certain terms and conditions of its offer related to the offer to sell, or solicitation of an offer to buy, Husky shares in certain U.S. states, districts and territories.

Husky says one of the changes is that California will no longer be considered a “Restricted State”.  MEG shareholders living in California that are not exempt institutional investors will be able to choose to receive share consideration under the offer.

And MEG shareholders in New York State may choose to receive share consideration under the offer.

Husky says it has hired TD Securities Inc. to act as soliciting dealer manager in relation to the company’s offer to purchase all of MEG’s outstanding shares.  Goldman Sachs Canada and TD Securities are acting as financial advisors to the offer.

Husky’s offer will be open for acceptance until 5 p.m. Eastern Time (3 p.m. Mountain Time) on Wednesday, January 16. The offer announced includes a condition that at least two-thirds of MEG shares must be tendered before Husky will take up shares to successfully complete the transaction.

Facebook Comments

Be the first to comment

Leave a Reply

Your email address will not be published.


*