Cenovus Energy Inc. has announced the acquisition of Athabasca Oil Corp. in a transaction valued at $5.7 billion, combining cash and stock components. CEO Jon McKenzie expressed enthusiasm for integrating Athabasca’s top-tier, enduring assets into Cenovus’s existing portfolio, foreseeing enhanced operational efficiency, production growth, and sustainable shareholder value creation.
The agreement will bolster Cenovus’s daily production by approximately 45,000 barrels of oil equivalent. Shareholders of Athabasca will be granted the choice of receiving either $12 in cash or 0.264 of a Cenovus common share per share held, with predefined limits on the total cash and shares accessible. The cash component is capped at $4.3 billion, while the share allocation is restricted to 44.4 million Cenovus shares.
Closing prices on the Toronto Stock Exchange for Cenovus and Athabasca stood at $46.25 and $10.58, respectively, at the end of trading on Friday. The completion of the purchase is anticipated in December, contingent upon standard closing protocols, encompassing regulatory clearances and shareholder endorsements.