Canadian Oil Sands accepts amended offer from Suncor

The board of Canadian Oil Sands Ltd. (COS) has accepted an amended offer from Suncor Energy Inc. for all the outstanding shares of COS and is recommending that shareholders do the same.

COS shareholders would get 0.28 of a share of Suncor for each COS share, up from 0.25 in the unsolicited offer from Suncor on Oct. 5. COS has until now urged shareholders to reject Suncor’s efforts.

The amended offer has a total aggregate transaction value of about $6.6 billion (Can.), including COS’ estimated debt of $2.4 billion (Can.).

The deadline for COS shareholders is expected to be extended to Feb. 5 from Jan. 27 (OGJ Online, Jan. 11, 2016). The amended offer includes a breakup fee of $130 million (Can.) payable by COS to Suncor if the offer is not completed.