06:47 AM EDT, 09/08/2025 (MT Newswires) -- Strathcona Resources ( STHRF ) on Monday increased its offer to acquire all of MEG Energy's ( MEGEF ) common shares it does not already own for 0.80 of a Strathcona common share per MEG share. Its previous offer was for 0.62 of a Strathcona share and $4.10 in cash per MEG share.

The amended offer values MEG at C$30.86 per share and an 11% premium to the rival agreement entered into by MEG and Cenovus Energy ( CVE ). MEG on Aug. 28 struck a deal with Cenovus Energy ( CVE ) , under which Cenovus moved to acquire all of MEG's common shares in a deal that valued MEG at $27.79 per share as of Sept. 5. Strathcona said its amended offer reflects a 10% increase to Strathcona's original offer, which was valued at $28.02 per MEG Share as of September 5, 2025.

As previously disclosed, in the fourth quarter Strathcona intends to undertake a special distribution of $2.142 billion to all holders of Strathcona Shares as a dividend or, at the election of shareholders, a return of capital. If the amended offer is successful, the special distribution will equate to about $5.22 per Strathcona share. If the amended offer is unsuccessful, the special distribution will equate to about $10 per Strathcona share.

Strathcona said Waterous Energy Fund, its largest shareholder, has a long-term view of the business and has no plans to sell any of its Strathcona shares, "contrary to claims by the MEG board of directors."

The company also said the deal between MEG and Cenovus was "highly lopsided," which was reflected in the market reaction in the days following the announcement.

"This extraordinary outcome was the product of a MEG board of directors which has amongst the lowest share ownership in the Canadian oil and gas sector and a broken sale process which clearly generated little interest from other industry players and excluded Strathcona," Strathcona said.