Husky Energy is preparing to takeover the shares of another oil company.
The oil giant announced on Sunday their plans to acquire all of the outstanding shares of MEG Energy Corp for roughly $3.3 billion. The addition of MEG’s net debt brings the potential hostile takeover to $6.4 billion.
“The MEG Board of Directors has refused to engage in a discussion on the merits of a transaction, giving us no option but to bring this offer directly to MEG shareholders,” said Husky CEO Rob Peabody, in a release.
All shareholders will get the chance to choose between receiving $11 in cash for each of their shares or trade them in to receive less than half of a Husky share for each of MEG’s.
“Husky is confident the proposed transaction is in the best interests of Husky and MEG shareholders, employees and stakeholders,” added Peabody.
The proposed takeover would mean that Husky would get control of MEG’s Christina Lake Facility – located roughly 150 km south of Fort McMurray. Earlier this year, the site averaged over 71,000 barrels of bitumen per day.
The takeover would result in the combined company producing more than 400,000 bbls/d.