Tag: Suncor

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Economic Ft Mac

COS Takeover Deal can be Closed by Suncor After Sufficient Support Received

After months of heated comments and accusations on both sides the COS takeover deal can be closed by Suncor after the energy company received sufficient support for the deal. For months now Suncor Energy has been urgently asking Cos shareholders to tender the shares that they own so that Suncor could take over Canadian Oil Sands. Suncor has finally received enough support and gained enough COS shares to close their takeover in spite of the fact that some COS executives and board members were against the takeover. Suncor recently made an announcement that they had support from 84.2% of COS shareholders and they control more than two thirds of the COS shares out there. The company gave a statement which read that it“Is in a position to ensure the successful outcome of the shareholder vote in respect of this subsequent acquisition transaction. Once this transaction is completed, all COS shares that remain outstanding will be acquired for the same consideration offered in the offer.”

The COS takeover bid by Suncor started last October. Suncor made an announcement that they were offering a $4.2 billion bid for Canadian Oil Sands. This bid offer was rejected by COS and company executives argued that Suncor made an offer which was not sufficient. COS shareholders were urged to reject the deal by the company executives and top shareholders. In January COS management agreed that they would accept an amended deal that was offered. Early in February Suncor had acquired 73% of the COS shares.

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Alberta Economic Ft Mac

Close to 73% of Canadian Oil Sands Shares have Been Acquired by Suncor

Suncor has made an announcement that the company has acquired almost 73% of the Canadian Oil Sands shares, giving Suncor the accompanying rights that the energy company has been seeking n the last few months. After trying to acquire COS shares with two separate offers Suncor made a hostile takeover bid for Canadian Oil Sands. This led to months of disagreements and negative statements on both sides. Suncor needed to have two thirds of the COS stock tendered by shareholders in order to be successful in their goal, otherwise the offer worth $4.3 billion would fall through. A Friday announcement alerted the public that Suncor will have the ability t acquire the rest of the COS shares needed and ensure the acquisition transaction goes as planned.

In January Canadian Oil Sands accepted the takeover offer made by Suncor, and management approval was secured. Originally Suncor was offering COS shareholders an exchange of 1 COS share for 0.25 Suncor share. This offer was increased to 0.28 share of Suncor stock for every share of COS stock. This is good news for stockholders who offered their shares. Suncor president and CEO Steve Williams gave a statement that read in part “We’re pleased with the strong level of support from COS shareholders. From the outset, we’ve spoken about the excellent value this offer creates for both COS and Suncor shareholders and I’m looking forward to delivering on that commitment.” With the low oil prices and recent cuts made by almost every company in the energy sector the acquisition could be good news for everyone involved.

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Alberta Economic Ft Mac

Suncor Not the Only Company Interested in COS According to Financial Adviser

Suncor, COS

According to a financial adviser Suncor is not the only company who may be interested in COS, and the Alberta Securities Commission must decide whether COS can continue with their defence against a hostile takeover. On October 5 of this year Suncor tried to bypass the COS board and take an offer directly to the shareholders of Canadian Oil Sands, an offer that involved $4.5 billion in stock only. This move was made necessary because COS refused the friendly deal that was initially offered. According to a filing by financial adviser Jamie Anderson of RBC Capital Markets there are several credible parties who are considering COS, and some have even signed confidentiality agreements. The new shareholder rights plan enacted by COS after the hostile takeover bid is described as a poison pill defense by Suncor but COS sees it differently.

In an affidavit filed over the Suncor bid for COS Anderson stated “I firmly believe that with more time to run our process, there is a good prospect for one or more counterparties to make a proposal. In my opinion, a 60-day period to canvas the range of parties interested in the COS opportunity, to permit them to undergo due diligence and to negotiate an alternative transaction is simply insufficient in these circumstances. I firmly believe 120 days is a more realistic time period.” COS claims that Suncor is being exploitive and opportunistic. COS CEO Ryan Kubik explained “If Suncor had confidence in the merits of its bid, it wouldn’t be trying to ram it through by challenging our shareholder rights plan. It would not need to try to steal time for a decision from our shareholders.” Do you think Suncor is offering a fair bid? Why or why not?

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Alberta Economic

Takeover Bid by Suncor Rejected by Canadian Oil Sands

Suncor, Canadian Oil Sands

A recent takeover bid by Suncor for Canadian Oil Sands has been rejected, with Canadian arguing that more time is needed so the company can examine and evaluate all of their options. Suncor made an unsolicited takeover offer in the amount of $4.3 billion, but the attempt was one that was not welcome or wanted by Canadian. Last Wednesday Canadian Oil Sands made an announcement about a shareholder rights plan which would be designed so that board members and shareholders had sufficient time to go over all of the possible options. Other companies have also made offers, some of which propose mergers with Canadian Oil Sands instead of an outright takeover of the company. According to the plan the company shareholders will have a minimum of 120 days to review any offers. The plan will go into effect if 20% or more of the company shares are obtained or there are efforts to acquire at least 20% of the company stock.

Canadian Oil Sands released a statement arguing that a previous offer was higher than the current takeover bid amount. The board chairman for Canadian Oil Sands, Donald Lowry, said “The Board will consider Suncor’s unsolicited offer in both the current context and in light of the strong long-term potential of Canadian Oil Sands. Shareholders do not need to take any action or make any decision about the Suncor offer until the board has had an opportunity to fully review the offer and to provide a recommendation based on careful analysis.”

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Alberta Economic Ft Mac

Proposed Suncor Mining Project Too Close to Fort MacMurray?

Suncor, Fort MacMurray

Is a new proposed Suncor mining project located too close to Fort MacMurray? The project would be located only 6 kilometres from the city, and some think that that is just too close for comfort. So far Suncor has met with aboriginal groups and municipal authorities in order to gain some feedback on the proposal for the Voyageur South Mine project. This project is intended to replace the North Steepbank Extension mine when the full depletion of bitumen occurs in the near future. The new project by Suncor is projected to produce approximately 250,000 barrels of bitumen each day and will have a 28 year lifespan. The exact size and specific area for the project has not been mapped out yet but the website for Suncor has a statement about the nearest permanent residence from the planned project area is six kilomtres from the project site.

According to the Suncor website statement about the proposed Fort MacMurray project “The proposed project will include soil stockpiling followed by mining operations, as well as ore preparation, primary extraction facilities, tailings management, and related pipeline, power line and road infrastructure. Progressive reclamation will occur over time.” There will be submission of an integrated application to the Canadian Environmental Assessment Agency and the Alberta Energy Regulator at some point next year. According to Industry Relations Manager for the Municipality of Wood Buffalo Dennis Vroom “It’s challenging to make specific comments right now because we don’t know specific details of the project. Once the application is formally made to the provincial government, we’ll take it and assess it for potential impacts and go from there.”