In October 2015, Suncor Energy initially launched an unsolicited CAD$4.3bn ($3.2bn) takeover offer for COS.
As per the offer terms, shareholders of Canadian Oil Sands were offered 0.25 of a Suncor share for each share held.
COS, however, recommended its shareholders later to reject the offer citing that the bid undervalues the company.
Suncor has now agreed to amend its offer to increase the price to 0.28 for each COS share.
Suncor president and CEO Steve Williams said: "We are pleased to have the support of the COS Board of Directors and shareholders, including Seymour Schulich, and have been advised of their intent to tender their shares.
"We believe this transaction delivers excellent value to COS shareholders while maintaining Suncor’s commitment to capital discipline, providing both companies’ shareholders with near and long-term value."
COS has determined that the amended offer is in the interests of the company and its shareholders.
Canadian Oil Sands chairman Don Lowry said: "This agreement fulfills that commitment, providing our shareholders with a higher exchange ratio for their shares despite a 37 percent decline in spot oil prices."
The sale comes in line with Canadian Oil Sands’ plan to offload future production assets in a bid to maintain its balance sheet amid plunging oil prices, Wall Street Journal reported earlier.
Canadian Oil Sands owns 36.74% interest in the Syncrude project, which is claimed to be the largest producer of light, sweet synthetic oil from Canada’s oil sands.
Image: Canadian Oil Sands’ Syncrude plant site. Photo: courtesy of Canadian Oil Sands Limited.
