Cenovus to buy Athabasca Oil in $4 billion cash-and-stock deal

By Reuters News

Oct 5 (Reuters) - Cenovus Energy CVE.TO said on Monday it would acquire Athabasca Oil ATH.TO in a cash-and-stock transaction valuing the Canadian oil producer at an implied enterprise value of C$5.7 billion ($4 billion), expanding its oil sands business in Alberta.

The acquisition will add about 45,000 barrels of oil equivalent per day to Cenovus' production and give it more long-life oil sands assets near its existing operations.

The company expects the deal to deliver about C$85 million a year in savings and other benefits.

Under the agreement, Cenovus will acquire all outstanding Athabasca shares for C$12 per share in cash and Cenovus stock. The offer represents a premium of about 13.4% to Athabasca's last closing price of C$10.58 on Friday.


($1 = 1.4245 Canadian dollars)

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