Takeover by Adam Waterous is a sweet deal for Pipestone: Cole Smead
Shareholders of Pipestone Energy Corp. have voted to approve a merger with Strathcona Resources Ltd.
Shareholders voted in favour Wednesday of a proposal which will see privately held Strathcona buy them out in an all-stock deal, creating a combined company with an initial market capitalization of $8.6 billion.
The deal will see Strathcona go public.
The Calgary-based companies say the merger will create what will be the fifth largest oil producer in Canada, with production of 185,000 barrels of oil equivalent per day.
The merged company will retain the Strathcona Resources name and will be led by Strathcona executive chair Adam Waterous and current CEO Rob Morgan.
The merger is expected to close Oct. 3.
This report by The Canadian Press was first published Sept. 27, 2023.