Canadian Mining Journal

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OIL SANDS: Suncor makes $6.6B bid for Canadian Oil Sands Limited

CALGARY – Suncor Energy has made an unsolicited, $6.6-billion takeover bid for Canadian Oil Sands Ltd. COSL shareholders would receive 0.25 of a Suncor share for each outstanding COSL share, an offer worth $4.3 billion. Suncor would also...



CALGARY – Suncor Energy has made an unsolicited, $6.6-billion takeover bid for Canadian Oil Sands Ltd. COSL shareholders would receive 0.25 of a Suncor share for each outstanding COSL share, an offer worth $4.3 billion. Suncor would also assume COSL’s outstanding debts in the amount of $2.3 billion, bringing the total value of the acquisition to $6.6 billion.

Suncor outlined several benefits of its offer. The price represents a premium of 43% based on the closing prices of the respective shares on Oct. 2, 2015. Suncor shareholders have enjoyed superior dividend growth. Suncor is an integrated energy company with consistent cash flow and access to capital markets. Suncor’s management is experienced both on the financial and operational sides. Holders of Suncor shares will enjoy tax benefits if they elect to defer capital gains until such shares are disposed of.

COSL holds a 36.74% interest in the Syncrude oil sands project, and Suncor holds 12%. Suncor also owns and operates the Suncor oil sands project as well as 40.8% of the Fort Hills oil sands development project and 36.75% of the stalled Joslyn North project.

Suncor’s offer is open until 5 pm (Calgary time) on Dec. 4, 2015. Detailed materials for COSL shareholders are posted at the Suncor website, Suncor.com/en/investor/434.aspx