Cenovus Energy Inc. has announced the acquisition of Athabasca Oil Corp. in a transaction valued at $5.7 billion, combining cash and stock components.
CEO Jon McKenzie of Cenovus expressed that Athabasca’s valuable, enduring assets complement the company’s existing portfolio, presenting an opportunity for enhanced performance, increased production, and sustainable shareholder value.
The deal is set to boost Cenovus’s production by approximately 45,000 barrels of oil equivalent per day. Under the agreement, Athabasca shareholders can opt to receive either $12 in cash or 0.264 of a Cenovus common share for each of their shares, with constraints on the total cash and shares available.
The cash portion of the deal is limited to $4.3 billion, while the maximum number of Cenovus shares offered stands at 44.4 million. Cenovus’s shares concluded at $46.25 on the Toronto Stock Exchange, with Athabasca closing at $10.58.
The completion of the acquisition is anticipated by December, pending standard closing prerequisites such as regulatory and shareholder endorsements.