Cenovus to buy Athabasca Oil in $4 billion cash-and-stock deal
CVE•Cenovus said it would acquire Athabasca Oil in a cash-and-stock deal valuing the Canadian oil producer at an implied enterprise value of C$5.7 billion ($4 billion). The deal is expected to add about 45,000 barrels of oil equivalent per day and generate about C$85 million in annual savings and other benefits.
1. Deal terms
Cenovus will acquire all outstanding Athabasca shares for C$12 per share in cash and Cenovus stock. The offer represents a premium of about 13.4% to Athabasca's last closing price of C$10.58 on Friday.
2. Production and savings
The acquisition will add about 45,000 barrels of oil equivalent per day to Cenovus' production and give it more long-life oil sands assets near its existing operations. Cenovus expects the deal to deliver about C$85 million a year in savings and other benefits.
