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Cenovus Energy Inc. has signed a deal to buy Athabasca Oil Corp. in a cash-and-stock deal valued at $5.7 billion.
Cenovus CEO Jon McKenzie says Athabasca’s high-quality, long-life assets fit the company’s portfolio and provide a clear opportunity to improve performance, grow production and create long-term shareholder value.
Cenovus says the deal adds about 45,000 barrels of oil equivalent per day of production.
Under the terms of the agreement, Athabasca shareholders will have the option to to receive $12 in cash or 0.264 of a Cenovus common share for each share they hold, subject to limits on the total cash and shares available.
The total cash available is capped at $4.3 billion, while the number of Cenovus shares available under the offer is limited to 44.4 million.
Cenovus shares closed at $46.25 on the Toronto Stock Exchange on Friday, while Athabasca closed at $10.58.
Cenovus says it expects to close the deal in December, subject to customary closing conditions, including regulatory and shareholder approvals.
