Cenovus Energy (CVE) said Monday it raised its offer to acquire Canadian firm MEG Energy for 30 Canadian dollars ($21.47) per share, from CA$29.50 previously.

Under the revised terms, each MEG shareholder can get either CA$30 in cash, or 1.255 Cenovus shares, or a combination of both, MEG Energy said in a separate statement. On a fully pro-rated basis, MEG Energy shareholders would receive roughly CA$15 in cash and 0.6275 of a Cenovus share, the company said.

The revised offer values MEG Energy at about CA$8.6 billion, including assumed debt, based on Cenovus Energy's Oct. 24 closing price, MEG Energy said, adding that its board recommends shareholders vote in favor of the offer at its special meeting on Thursday.

Strathcona Resources, which holds about 14.2% of MEG Energy shares, has agreed to vote in favor of the deal under a voting support agreement, Cenovus said.

Cenovus will also sell assets to Strathcona Resources for up to CA$150 million, including CA$75 million in cash on closing and up to CA$75 million in payments linked to future commodity prices.

The company expects the sale to close in Q4. Assets include the Vawn thermal heavy oil project in Saskatchewan and undeveloped lands in western Saskatchewan and Alberta, with average production of about 5,000 barrels of oil per day.

That deal still needs shareholder and court approval, Cenovus said.