Suncor Energy has made a CAN$4.3 billion bid to acquire Canadian Oil Sands Ltd, (COS).
"We believe this is a financially compelling opportunity for COS shareholders," Steve Williams, Suncor's President and CEO, said in a statement. "We're offering a significant premium to COS's current market price and also providing exposure to a meaningful dividend increase. We're confident in the value this Offer provides to COS shareholders."
The offer value is 43% above the market value for Canadian Oil Sands, based on closing prices at the Toronto Stock Exchange on 2 October 2015.
Williams commented that Suncor approached Canadian Oil Sands’ management on 6 March and submitted an ‘expression of interest’, but that and an offer for the equivalent of CAN$11.84 a share on 9 April were both rebuffed by Canadian Oil Sands’ board.
Under the terms of the offer, each COS shareholder would receive a consideration of 0.25 of a Suncor share per COS share.
The offer is due to expire on 4 December 2015.