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Suncor Energy to raise C$2.5 billion to fund possible purchases

Published 2016-06-07, 05:20 p/m
© Reuters. Suncor Energy to raise C$2.5 billion to fund possible purchases
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TORONTO, June 7 (Reuters) - Canadian oil and gas producer
Suncor Energy Inc SU.TO said it would raise C$2.5 billion ($2
billion) through the sale of new shares to enable it to increase
its stake in its Syncrude oil sands joint venture and to fund
other possible acquisitions.
The company said it would sell 71.5 million common shares at
a price of C$35 per share, a discount to its closing price of
C$36.5 per share on Tuesday.
It said the proceeds would be used to finance a previously
announced deal to acquire an additional 5 percent stake in its
Syncrude oil sands joint venture from Murphy Oil (NYSE:MUR) Corp's MUR.N
Canadian unit for about C$937 million and to give it the
flexibility to pursue other "opportunistic growth transactions."
Bankers have forecast an upturn in energy-related M&A
activity this year with the low price of oil and recent cuts to
companies' credit lines leaving some companies needing to look
for new investment or buyers in order to survive.
Larger oil producers such as Suncor may be in a position to
take advantage of sector consolidation, they say.
The share offer will be made through a syndicate of
underwriters led by TD Securities, CIBC Capital Markets and J.P.
Morgan Securities Canada, Suncor said.
(1 = 1.2753 Canadian dollars)

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