08:13 AM EDT, 09/15/2025 (MT Newswires) -- Cenovus Energy's ( CVE ) acquisition offer gained the support of MEG Energy's board, which has reaffirmed its recommendation that shareholders vote for the Cenovus transaction and reject the revised Strathcona offer, MEG Energy said Monday.

The Cenovus arrangement values MEG at about 28.18 Canadian dollars ($20.45) per share on a fully prorated basis and an enterprise value near CA$8.2 billion. Shareholders may choose to receive CA$27.25 cash or 1.325 Cenovus shares, or a combination of cash and stock, MEG said.

The revised Strathcona proposal, an all-share deal, includes a conditional CA$2.14 billion special distribution that would raise leverage and expose holders to illiquid, potentially overvalued Strathcona shares with material overhang, MEG said.

The Cenovus deal delivers about 73% of value in cash, offers synergies of roughly CA$150 million rising to over CA$400 million by 2028, and includes Cenovus' plans to invest about CA$400 million of capital in 2026 to 2028 to accelerate Christina Lake production to 150,000 bpd by 2028, the company added.

MEG said shareholders will vote at a special meeting on Oct. 9 in Calgary.