Suncor Energy Inc. (SU) launched an all-stock hostile bid for Canadian Oil Sands Ltd. valued at about C$4.3 billion ($3.29 billion), as the company increases its focus on Canada's oil sands.
Each Canadian Oil Sands shareholder will receive 0.25 of Suncor shares for each share held, the company said on Oct. 5.
The offer works out to C$8.84 per share based on Suncor's close on Oct. 2 and represents a premium of about 43% to Canadian Oil Sands' last close on the Toronto Stock Exchange.
The deal is valued at about C$6.6 billion including Canadian Oil Sands' debt of C$2.3 billion as of June 30.
Canadian Oil Sands and Suncor are among stakeholders in Canada's largest synthetic crude project, Syncrude, in northern Alberta.
Alberta's oil sands are the world's third-largest crude reserves after Saudi Arabia and Venezuela and a leading source of U.S. crude imports.
Suncor in September bought a tenth of the Fort Hills oil sands project in northern Alberta from French oil company Total SA (TOT).
The tender offer for Canadian Oil Sands will be open until Dec. 4 unless extended or withdrawn, the company said.
Suncor's financial adviser is JP Morgan Securities LLC while Blake, Cassels & Graydon LLP and Sullivan & Cromwell LLP are its legal advisers. ($1 = 1.3076 Canadian dollars)
Recommended Reading
Diamondback May Go Nuclear to Power Permian Basin Ops
2024-04-08 - Oklo Inc., a California fission power plant developer, on April 8 said it signed a letter of intent to collaborate with Diamondback Energy on implementation of nuclear energy for drilling operations in the Permian Basin.
Galp Seeks to Sell Stake in Namibia Oilfield After Discovery, Sources Say
2024-04-22 - Portuguese oil company Galp Energia has launched the sale of half of its stake in an exploration block offshore Namibia.
Sangomar FPSO Arrives Offshore Senegal
2024-02-13 - Woodside’s Sangomar Field on track to start production in mid-2024.
CNOOC Makes 100 MMton Oilfield Discovery in Bohai Sea
2024-03-18 - CNOOC said the Qinhuangdao 27-3 oilfield has been tested to produce approximately 742 bbl/d of oil from a single well.
CNOOC Finds Light Crude at Kaiping South Field
2024-03-07 - The deepwater Kaiping South Field in the South China Sea holds at least 100 MMtons of oil equivalent.