Suncor wrapping up grab of Canadian Oil Sands

Suncor last year made an all-stock $3 billion hostile offer for its rival.
By Daniel J. Graeber Follow @dan_graeber Contact the Author   |   Feb. 23, 2016 at 7:40 AM
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CALGARY, Alberta, Feb. 23 (UPI) -- Canadian energy company Suncor said that, with most of the shares of rival Canadian Oil Sands Ltd. in its control, the latter was on a path to delisting.

Suncor said its final offer for all common shares and accompanying rights of Canadian Oil Sands Ltd. has expired and it was now in control of roughly 84 percent of the common shares. Those still holding out were eligible to tender their stake in exchange for about a quarter of one common share of Suncor.

"As Suncor exercises control and direction over greater than 66 percent of the outstanding Canadian Oil Sands shares, it is in a position to ensure the successful outcome of the shareholder vote in respect of this subsequent acquisition transaction," a statement from Canadian Oil Sands read.

Suncor made a hostile all-stock offer for its rival last year estimated at $3 billion. In early February, Suncor replaced the entire board of directors at Canadian Oil Sands with former Suncor executives.

Former Canadian Oil Sands Chairman Don Lowry and Chief Executive Officer Ryan Kubik, both ousted as a result of the merger, had worked to persuade shareholders Canadian Oil Sands was better positioned as a standalone company.

Suncor reported an operating loss of $18.9 million and a net loss of $1.45 billion for the fourth quarter.

In its latest statement, Suncor said that once it seizes the remaining common shares in Canadian Oil Sands, the company will be de-listed from the Toronto Stock Exchange.

Both companies are stakeholders in the Syncrude oil sands processing facility in Alberta, though Canadian Oil Sands held the most shares in the operation.

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