08:04 AM EDT, 05/16/2025 (MT Newswires) -- (Correcting report to omit all references to Pan American Silver ( PAAS ) which recently agreed to buy MAG Silver Corp ( MAG ), not MEG Energy ( MEGEF ). A corrected story follows.)

MEG Energy ( MEGEF ) on Friday said its board will "consider and evaluate" Strathcona Resources' ( STHRF ) unsolicited offer to acquire all of MEG's issued and outstanding common shares it doesn't already own if and when a related take-over circular arrives.

A MEG statement adds: "No formal offer has been made by Strathcona and MEG shareholders are advised to take no action with respect to any Strathcona offer until the board has had an opportunity to fully review the offer, if and when received, and to make a recommendation as to its merits."

Strathcona will offer to acquire all MEG issued and outstanding common shares it doesn't already own for 0.62 of a Strathcona common share and $4.10 in cash for each MEG share. Based on Strathcona's closing share price on Thursday, the offer values MEG shares at $23.27, a 9.3% premium compared with MEG's closing price on the same day.

Strathcona said the offer will not be subject to any financing condition, with the cash component expected to be funded through a bridge financing commitment from a syndicate of lenders, subject to the terms and conditions of such financing. At the time the offer is commenced, Waterous Energy Fund, currently the holder of 79.6% of the Strathcona shares, intends to, through Waterous Energy Fund III, commit to further increase its investment in Strathcona and subscribe for an additional 21.4 million Strathcona shares through the use of subscription receipts.

Upon completion of the offer, Strathcona expects to have approximately 379 million Strathcona shares outstanding and approximately $1.5 billion in net debt. The combined business is expected to be owned approximately 56.5% by existing holders of Strathcona Shares, approximately 37.8% by existing holders of MEG shares and approximately 5.6% by WEF III. WEF is expected to hold a combined approximately 51% ownership position, inclusive of its existing Strathcona Shares and those expected to be issued to WEF III pursuant to the WEF III Equity Investment.