Husky Is Likely to Win Support to Extend MEG Bid Deadline
https://www.bloomberg.com/news/articles ... on-meg-bid
"Husky Energy Inc. is expected to win support to extend a deadline to persuade shareholders to back its hostile bid for rival oil-sands producer MEG Energy Corp., despite falling short of winning outright support for the offer, according to people familiar with the matter."
Original PR - https://huskyenergy.com/news/release.as ... id=1587403
Update: Just trying to see what the implied value is to a MEG shareholder today were this takeover to go through. If someone cares to check my math and logic, I'd appreciate it.
Assumption is that all the shareholders elect for the all cash offer aka "Cash Consideration" with the balance "subject to pro-ration."
All Cash offer = $11.00
MEG Shares Outstanding (via TMX) = 296,841,071
MEG/HSE Share Exchange Ratio = 0.485
MEG COB = $8.54
HSE COB = $15.53
"Maximum Cash Consideration" = $1,000,000 (CAD assumed, but not stated in the circular.)
MEG value based on $11/sh and shares outstanding = $11.00 x 296,841,071 = $3,265,251,781.00
Maximum cash payout ratio per share based on the assumption = $1B/$3.265B = 0.3063
Balance to be paid out in HSE shares = 1-0.306 = 0.6937
1 share of MEG into HSE
Cash value per share = 0.3063 x $11 = $3.369
Share value in HSE = 0.6937 x 0.485x$15.53 = $5.225
=> Today's COB inferred takeover value of 1 MEG share = $3.369+$5.225 ~ $8.594