Canada's Waterous plans to expand Osum Oil Sands stake in C$126 million deal

(Reuters) – Private equity firm Waterous Energy Fund, which holds a 45% stake in Canada’s Osum Oil Sands, said on Tuesday it plans to buy about 40% more stake in the privately held energy company in a deal valued at C$126 million ($95.96 million).

Calgary-based Waterous Energy said Osum shareholders would receive cash consideration of C$2.40 per share for each share tendered.

The deal comes at a time when the pandemic has put additional pressure on energy companies in Canada, the fourth-largest global oil producer, forcing them to cut costs and consolidate to weather a downturn.

Last month, Cenovus Energy Inc CVE.TO agreed to buy rival Husky Energy HSE.TO to create Canada’s No. 3 oil and gas producer.

Earlier this year, Cona Resources, a Waterous portfolio company acquired Pengrowth Energy for about C$740 million.

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