Cenovus Energy Inc. has announced its acquisition of Athabasca Oil Corp. in a transaction valued at $5.7 billion, combining cash and stock components. CEO Jon McKenzie highlighted the alignment of Athabasca’s high-quality assets with Cenovus’s existing portfolio, presenting opportunities for enhanced performance, increased production, and sustained shareholder value growth.
The agreement is set to increase Cenovus’s daily production by approximately 45,000 barrels of oil equivalent. Shareholders of Athabasca will be offered a choice between $12 in cash or 0.264 of a Cenovus common share for each share they hold, with restrictions on the total cash and shares available. The cash portion is limited to $4.3 billion, while the maximum number of Cenovus shares offered stands at 44.4 million.
Closing prices on the Toronto Stock Exchange showed Cenovus shares at $46.25 and Athabasca at $10.58 at the end of trading on Friday. The completion of the acquisition is anticipated in December, subject to standard closing conditions such as regulatory approvals and consent from shareholders.