MEG Energy's Christina Lake thermal oilsands project, seen in 2013. Photo by MEG Energy

Cenovus Energy Inc. unveiled a $7.9-billion white knight bid for MEG Energy Corp. on Friday, a cash-and-stock deal that has the blessing of MEG’s board after it rejected a hostile takeover attempt by Strathcona Resources Ltd.

The oilsands major is offering $20.44 in cash plus 0.33 of a Cenovus share for each MEG share, with an implied value of $27.25 per share of MEG, representing a 33 per cent premium to MEG’s pre-bid share price, but a slight discount to its current price.

MEG called it “the best strategic alternative” to either Strathcona’s bid or the company’s standalone plans, noting its board unanimously supports the deal, although shareholders will ultimately make the decision whether

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