Cenovus Energy Inc (TSX:CVE) announced on Monday that it has increased its takeover offer for MEG Energy Corp (TSX: MEG) once again, now winning the support of Strathcona Resources Ltd, which had previously opposed the agreement.
Under the new proposal, Cenovus will pay $30 in cash, or 1.255 Cenovus shares, for each MEG share with limits of $3.8 billion in cash and 159.6 million shares available under the offer.
The previous bid by Cenovus was $29.50 in cash or 1.240 Cenovus common shares, for each MEG share held with limits of $3.8 billion in cash and 157.7 million shares available.
MEG shareholders will vote on the offer on October 30.
Strathcona currently owns 14.2% of MEG and recently withdrew its own hostile all-stock offer for the company.
Cenovus and MEG have oilsands properties next to one another at Christina Lake, south of Fort McMurray, Alberta.
Cenovus also reported on Monday the sale of certain assets, including the Vawn thermal heavy oil asset in Saskatchewan and certain undeveloped lands in western Saskatchewan and Alberta, to Strathcona for total proceeds of up to $150 million.
MEG Energy shares rose 3.5% to C$29.88 following the announcement, while shares of Cenovus Energy edged up 0.3% to C$23.99.