logo
Plus   Neg
Share
Email

Husky Energy Reaffirms Commitment To Offer For MEG Energy

Husky Energy (HSE.TO) reaffirmed its commitment to the full and fair Offer to buy MEG Energy as outlined on October 2, 2018, and comments on MEG's recent statements and third quarter results.

"MEG's results reinforce our view that it has a quality asset base and a dedicated operating team, but it remains constrained by a highly levered balance sheet and lack of integration," said CEO Rob Peabody. "MEG continues to deliver negative free cash flow, and its assertions it can reverse this trend in the future rely on continued high oil prices and narrow heavy oil differentials."

Husky Energy noted that MEG shareholders should be aware MEG's stand-alone plan comes with a high level of risk.

Husky Energy said MEG's share price has increased significantly as a direct result of Husky's Offer, while shares of MEG's peers and heavy oil prices have fallen substantially over the same period. Absent the Offer, MEG shares would trade at a price well below current levels.

According to Husky Energy, the regulatory approval process continues to advance. The Canadian Commissioner of Competition has issued a "no action" letter confirming that at this time he does not intend to challenge the transaction pursuant to the Competition Act.

In addition, the U.S. Federal Trade Commission has granted Husky early termination of the required waiting period under the U.S. Hart-Scott-Rodino Act. All other required regulatory approvals are expected to be received by the end of the year.

The Offer will be open for acceptance until 5 p.m. Eastern Time on Wednesday, January 16, 2019.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
The European Commission said Friday that it has signed a deal with Sanofi and GlaxoSmithKline to secure up to 300 million doses of their potential COVID-19 vaccine. Acella Pharmaceuticals recalled certain lots of hypothyroidism medication NP Thyroid in the form of tablets due to super potency, the U.S. Food and Drug Administration said in a statement. The company is recalling one lot of 15mg and one lot of 120mg of NP Thyroid that are packaged in 100 count bottles in strengths of 15 mg, and 120 mg, with expiration dates between October 2020 and November 2020. Walmart announced its decision to raise wages for around 165,000 hourly associates across all its U.S. stores starting October, and introduce a team-based operating model in Supercenters. In a tweet, the retail giant said, "Today we're introducing new leadership roles and cross-training opportunities, giving our associates more ways to grow their careers."
Follow RTT