07:19 AM EDT, 05/30/2025 (MT Newswires) -- Strathcona Resources' ( STHRF ) tender offer to acquire MEG Energy ( MEGEF ) began on Friday as Waterous Energy Fund (WEF) pledged to invest $662 million in Strathcona.

MEG shareholders who tender their shares will receive 0.62 of a Strathcona share and $4.10 in cash per MEG share. Strathcona expects to issue up to 145 million shares.

Waterous Energy Fund, which owns 80% of Strathcona, has committed to purchasing 21.4 million Strathcona shares at $30.92 apiece. According to a statement, this is the largest investment at one time by a single shareholder, public or private, in the Canadian upstream oil and gas sector since 2014. The investment is expected to be completed by July 13.

"WEF's major further investment in Strathcona reflects our view that more than eight years into building Strathcona our best years are in front of us. As part of the Offer, we are asking MEG shareholders to join us as fellow shareholders in Strathcona and trust the Strathcona team as stewards of their capital," said Adam Waterous, Strathcona executive chair and WEF chief executive.