Husky Energy Inc. cumulative redeemable preferred T.HSE.PR.B

RE:RE:RE:RE:RE:HSE makes a tarsands move

[Fraser19]

Scottie99 wrote: autofocus, it is the $3.1 billion net debt that makes MEG toxic and I understand their current production is about 80,000 boe/day, which makes the buyout offer about $80,000/producing boe. Let see how the market would react but hope HSE don't contract the CVE bug when they tried to acquire the COP oilsands. They are yet to recover from that deal and hope this hostile takeover is worth it for HSE!

Husky Energy Inc. (TSX:HSE) (“Husky” or the “Company”) today announced a proposal to acquire all of the outstanding shares of MEG Energy Corp. (TSX:MEG) (“MEG”) for implied total equity consideration of approximately $3.3 billion. This proposal values MEG at an implied total enterprise value of $6.4 billion, including the assumption of approximately $3.1 billion of net debt.

autofocus111 wrote: @Scottie Yes it is a hostile takeover attempt by HSE.But the synergies are  strong, which is why I think HSA believes they can get 66% of MEG shareholders to accept it. Of course, they may decide to bump up the offer price to get the MEG BOD on-board. The offer is largely HSE stock so minimal increase to HSE debt . I do like the strategy of balancing out upstream and downstream capacity. From what I read, it appears MEG has longterm pipeline capacity to match its output, but if HSE can leverage the WCS discount and run the whole output integrated then that sounds like a win-win for both companies.

>>>The combined company will have total Upstream production of more than 410,000 barrels of oil equivalent per day (boe/day) and Downstream refining and upgrading capacity of approximately 400,000 barrels per day (bbls/day), providing for increased free cash flow per share, production growth and a basis for potential future dividend increases.

 

2018 exit guidance is expected to be 100,000 BoE/D. All things considered if HSE pulls this off at 11/share they will have done very well.