06:26 AM EDT, 08/29/2025 (MT Newswires) -- Strathcona Resources ( STHRF ) announced overnight Thursday that it intends, subject to market conditions, to buy an additional 5% of MEG Energy ( MEGEF ) common shares in a move to block Cenovus' (CVE.TO, CVE) attempt to buy MEG.

Last week, MEG agreed to have Cenovus acquire all issued and outstanding common shares of MEG in a transaction that values MEG at $27.25 per share.

The Canadian Press noted that Strathcona's offer, which is open until Sept. 15, includes a combination of 0.62 of a Strathcona share and $4.10 in cash per MEG share. Based on Strathcona's closing share price of $38.83 on Thursday, its bid is worth $28.17 per MEG share.

Overnight, Strathcona said it currently owns 23.4 million MEG Shares, representing approximately 9.2% of the issued and outstanding MEG Shares. Under applicable Canadian securities laws, while the offer is outstanding, Strathcona added it may acquire up to an additional 5% of the outstanding MEG Shares -- which, together with the existing MEG Shares held by Strathcona, will represent approximately 14.2% of the outstanding MEG Shares.

Following discussions with fellow MEG shareholders over the past week, Strathcona said it intends to vote its MEG Shares (including those it currently holds and subsequently acquires) against the resolution to approve the acquisition of MEG by Cenovus, which requires approval by at least two thirds of the votes cast by MEG shareholders present in person or represented by proxy at the special meeting of MEG shareholders currently scheduled to be held on October 9, 2025.

Strathcona's statement said: "Purchases of MEG Shares will occur as soon as practicable and from time to time, in each case in accordance with applicable securities laws. The purchase price for any MEG Shares acquired by Strathcona or any of its affiliates may be different than the per share value ascribed to the MEG Shares under Strathcona's offer to acquire all of the issued and outstanding MEG Shares not already owned by Strathcona or its affiliates for 0.62 of a common share of Strathcona and $4.10 in cash per MEG Share."