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

HSE makes a tarsands move

[autofocus111]

(Reuters) - Canadian oil and gas producer Husky Energy Inc (HSE.TO) said on Sunday it has offered to acquire MEG Energy Corp (MEG.TO) in a deal valued at C$6.4 billion ($5 billion) including debt.

https://www.reuters.com/article/us-meg-energy-m-a-husky-energy/canadas-husky-energy-offers-to-buy-meg-energy-in-5-billion-deal-idUSKCN1MA0Y2?

[Dogsbreakfast4U]

Hope this works! Even if it doesn't it shows that it's that business as usual under the new regime and that they are willing to shakes things up to grow. Management was playing this very close to their chest. This said they had to find a way to spend the billions in FCF they will rake in over the next few years!

[Scottie99]

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[autofocus111]

@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

[Scottie99]

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[Fraser19]

  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.

[mrbb]

you're a hypocrite spinner. CVE overpaid conocophillips asset when oil price was rising and conocophillips investors were happy to exit canada.  HSE is buying MEG at the absolute worst time for oilsand especially to those with no upgrading ability, historical high differential, gloomy outlook on pipeline.  So the investment extraordinaire scottie compare HSE buying MEG at the market

[Scottie99]

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[autofocus111]

@Scottie Sorry for the bad wording. Yes I'm aware of the MEG debt that HSE willl assume. What I meant was that by keeping the offer largely in new HSE shares, HSE isn't going to have issue piles of new debt to fund the acquisition.

[Scottie99]

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[Scottie99]

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[Dogsbreakfast4U]

This is a good deal for bith sides at $11. Nutall owns MEG so not surprised he would try to argue that 11 is not good enough and that other buyers will show up. I hope management doesn't offer more. They don't need to buy MEG as they have enough on their plate right now and there are other struggling heavy oil producers. They could go for a smaller player like Cardinal per example.

[Scottie99]

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[oilandgasmick]

I never thought I would say this but I agree with everything you have in this post. I don't like this deal even at 11 bucks never mind a second sweetened offer. With the great balance sheet they had, why take on another 3+ B in debt?  They could have bought assets from MEG as the company was already distressed and was probably looking at some discount sales. They didn't need the

[Fraser19]

  MEG is a one trick pony, there is one producing asset. You can only have it all or none.

[oilandgasmick]

Do you have to buy it all?  What about picking up a percentage? What about other heavy oil assets from other distressed companies?

[mrbb]

distressed jr oilsand assets are junk. if scottie think paying $80k/bo/day is too much, prepare to pay for more if you pick and choose, even junks

[oilandgasmick]

What sort of tax credits does MEG come with?

[Scottie99]

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[Scottie99]

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[mrbb]

Ditto. when scottie say paying 80k per bo/day for tarsand is too much while nutall say the bid is too low, $11 bid might be a good enough.