CALGARY — A MEG Energy Corp. shareholder vote on the proposed takeover by Cenovus Energy Inc. has been delayed another week.
MEG board chair James McFarland twice paused the meeting today due to a “regulatory inquiry” before adjourning it until Nov. 6.
It’s the latest twist in a bitter months-long takeover fight that pitted oilsands giant Cenovus against smaller rival bidder Strathcona Resources Ltd.
Strathcona dropped its all-stock bid earlier this month and on Monday pledged it would vote its 14 per cent stake in MEG in favour of a sweetened offer from Cenovus.
Cenovus also announced that it would sell properties in Saskatchewan and Alberta to Strathcona for $150 million.
McFarland says the meeting is being postponed so that MEG can disclose additional information on that transaction.
This is a breaking update. Below is The Canadian Press’ earlier story…
The chairman of MEG Energy Corp. has twice paused a shareholder meeting on a proposed takeover by Cenovus Energy Inc. to address an unspecified regulatory matter.
The meeting had originally been set for 9 a.m. local time today and was then postponed by five hours.
“My role as chair is a little bit more difficult this morning,” James McFarland told the meeting, being held in person and over webcast.
“I’ve made a decision to recess the meeting … in order to give us time to address a regulatory inquiry that came in late yesterday evening.”
McFarland did not elaborate on the nature of the inquiry.
As the meeting resumed at 2 p.m., McFarland announced another recess until 6 p.m. after consulting with the board, management and advisers.
It’s the latest twist in a bitter months-long takeover fight that pitted oilsands giant Cenovus against smaller rival bidder Strathcona Resources Ltd.
Strathcona dropped its all-stock bid earlier this month and on Monday pledged it would vote its 14 per cent stake in MEG in favour of a sweetened offer from Cenovus.
Cenovus and MEG have side-by-side oilsands properties at Christina Lake, south of Fort McMurray, Alta., while Strathcona also has steam-driven operations in the region.
The sweetened offer, made up of half cash and half stock, is worth $30 per share based on Cenovus’ closing stock price on Friday. Earlier, it had offered $29.50 in cash or 1.240 of a Cenovus share, worth $29.65 as of Friday.
The saga began in April when Strathcona approached the MEG board with a cash-and-stock takeover bid. Strathcona was rebuffed and took the offer directly to MEG shareholders weeks later.
In June, MEG’s board called the bid “opportunistic” and urged shareholders to reject it as it launched a review to find a superior offer. Strathcona executive chairman Adam Waterous had accused MEG of refusing to engage and taking an “anyone but Strathcona” stance.
In August, MEG announced its board had accepted the first friendly takeover offer from Cenovus. The following month, Strathcona amended its offer to be based entirely on stock, arguing that structure would give investors greater opportunity to benefit from future growth.
Cenovus upped its bid and offered a greater equity share in early October, and the companies agreed to allow Cenovus to buy up to 9.9 per cent of the target company’s stock ahead of the shareholder vote.
Strathcona abandoned its bid a few days later, saying the conditions of its offer could no longer be satisfied, while some MEG shareholders decried what they saw as unfair tactics to lock up the deal with Cenovus. Some wrote to the Alberta Securities Commission asking it to investigate.
The ASC declined to comment when asked if the regulatory inquiry originated with them, citing confidentiality.
This report by The Canadian Press was first published Oct. 30, 2025.