Cenovus Energy Inc. has announced a $5.7 billion acquisition deal to purchase Athabasca Oil Corp., combining cash and stock transactions. CEO Jon McKenzie highlighted Athabasca’s valuable and enduring assets as a strategic fit for Cenovus, offering an opportunity for enhanced performance, increased production, and sustainable shareholder value. The agreement is set to boost Cenovus’ daily production by approximately 45,000 barrels of oil equivalent.
In this arrangement, Athabasca shareholders can choose between receiving $12 in cash or 0.264 Cenovus common share per share held, with specified limits on the total cash and shares accessible. The cash component is restricted to $4.3 billion, while the maximum number of Cenovus shares available for exchange is capped at 44.4 million. Closing prices on the Toronto Stock Exchange showed Cenovus shares at $46.25 and Athabasca at $10.58.
Cenovus anticipates finalizing the acquisition by December, pending customary closing requirements such as regulatory and shareholder endorsements.