Cenovus in ‘advanced’ talks with Teachers’ over land asset sale: sources
by John Tila and Euan Rocha, Reuters, June 18, 2015, The Globe and Mail
Cenovus Energy Inc. is in exclusive discussions with the Ontario Teachers’ Pension Plan over the sale of royalty lands that could fetch about $2.5-billion to $3-billion, according to four sources familiar with the matter.
The sources, who asked not to be named as they have not been cleared to discuss the matter publicly, said the talks between Calgary-based Cenovus and Ontario Teachers, one of Canada’s top pension fund managers and investors, are at an advanced stage.
One oil patch observer believes the bigger impact on the provincial economy will be what comes out of the royalty review.
Two industry sources said that Teachers may look to partner with another player, given the size of the deal. In March, the fund manager said it was actively scouting for energy assets as it looks to trim positions in oil and gas derivatives and invest instead directly in producing assets.
Cenovus and Teachers declined to comment.