Private equity firm Waterous Energy Fund, which holds a 45% stake in Canada’s Osum Oil Sands, said on Nov. 3 it plans to buy about 40% more stake in the privately held energy company in a deal valued at C$126 million (US$95.96 million).
Calgary-based Waterous Energy said Osum shareholders would receive cash consideration of C$2.40 per share for each share tendered.
The deal comes at a time when the pandemic has put additional pressure on energy companies in Canada, the fourth-largest global oil producer, forcing them to cut costs and consolidate to weather a downturn.
In October, Cenovus Energy Inc. agreed to buy rival Husky Energy to create Canada’s No. 3 oil and gas producer.
Earlier this year, Cona Resources, a Waterous portfolio company, acquired Pengrowth Energy for about C$740 million.
($1 = 1.3131 Canadian dollars)
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