Suncor in $3.3-billion bid for Canadian Oil Sands

CALGARY, Alberta -- Suncor Energy has made an unsolicited offer to Canadian Oil Sands (COS) shareholders to acquire all of the company's outstanding shares for a total consideration of approximately C$4.3 billion ($3.3 billion), Calgary-based Suncor said Monday.

Under the terms of the offer, each COS shareholder would receive a consideration of 0.25 of a Suncor share per COS share. Including COS' estimated outstanding net debt of C$2.3 billion as at June 30, 2015, the total transaction value is approximately C$6.6 billion.

"We believe this is a financially compelling opportunity for COS shareholders," said Steve Williams, Suncor's president and CEO. "We're offering a significant premium to COS' current market price and also providing exposure to a meaningful dividend increase. We're confident in the value this offer provides to COS shareholders."

Suncor's offer represents a premium of 43% based on the closing prices of the COS shares and the Suncor shares on the TSX on Oct. 2, the last trading day before the offer was announced, and a 35% premium to the volume weighted average trading price of the COS shares on the TSX for the 30 trading days ended Oct. 2.

Suncor’s offer will be open for acceptance until 5:00 p.m. (Calgary time) on Dec. 4, unless extended or withdrawn.