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Suncor Energy and Canadian Oil Sands reach acquisition agreement

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Staff writer ▼ | January 18, 2016
Suncor
Acquisition   An increase in the original offer to COS shareholders

Suncor Energy and Canadian Oil Sands (CIS) announced that they have reached an agreement to support the offer by Suncor to purchase all of the shares of COS.

Under the terms of the support agreement Suncor has agreed to amend its offer to provide for an increase in the original offer to COS shareholders to 0.28 of a Suncor share for each COS share.

The amended offer, with a total aggregate transaction value of approximately $6.6 billion including COS' estimated debt of $2.4 billion, has the support of the Boards of Directors of both companies.

The COS voard has received an opinion from its financial advisor, RBC Capital Markets, that, as of January 17, 2016, the consideration under the Amended Offer is fair, from a financial point of view, to COS shareholders.

The COS board has determined that the Amended Offer is in the best interests of COS and recommends that shareholders tender to the Amended Offer.

A notice of variation and extension for the Amended Offer is expected to be mailed to registered security holders of COS by the end of this week and will be filed on COS' SEDAR profile. The Amended Offer will include an extension of the expiry time which is currently anticipated to be extended to 4:00 p.m. (MT) on February 5, 2016. COS shareholders are urged to carefully review this document in its entirety.

The Amended Offer is subject to certain conditions, including the acquisition by Suncor of at least 51% of the outstanding Shares (calculated on a fully-diluted basis) being validly tendered under the Amended Offer and not withdrawn. This minimum tender condition has been lowered from 66 2/3%.


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