Cenovus Energy Inc. has announced the acquisition of Athabasca Oil Corp. in a deal worth $5.7 billion, combining cash and stock. CEO Jon McKenzie expressed that Athabasca’s valuable assets align well with Cenovus’ existing portfolio, offering opportunities for enhanced performance, increased production, and sustained shareholder value growth. The agreement is set to boost Cenovus’ daily production by approximately 45,000 barrels of oil equivalent.
As per the terms of the acquisition, Athabasca shareholders will be able to choose between receiving $12 in cash or 0.264 of a Cenovus common share for each of their shares, with restrictions on the total cash and shares available. The cash component is capped at $4.3 billion, while the maximum number of Cenovus shares offered stands at 44.4 million.
On the stock market, Cenovus shares closed at $46.25 on the Toronto Stock Exchange, with Athabasca closing at $10.58. The completion of the deal, anticipated in December, remains subject to standard closing conditions, including regulatory and shareholder approvals.
