Faroe Criticizes DNO's Takeover Bid as 'Opportunistic'

Laxman Pai
Thursday, December 13, 2018

The oil and gas company with focus in Norway and the U.K. Faroe Petroleum has reaffirmed that Norwegian oil giant DNO ASA's GBP608mln ($761.65 million) unsolicited takeover offer for the AIM-listed firm is "opportunistic" and "substantially" undervalues it.

Aberdeen-headquartered Faroe accused DNO of trying to exploit the recent drop in oil prices to acquire the company “on the cheap”.

In a statement on Wednesday, Faroe simply said it noted DNO's offer and encouraged its shareholders to take no action.

"The Board reaffirms its previous statement that the offer is opportunistic and substantially undervalues Faroe, and encourages all shareholders to take no action. Furthermore, the Board believes that DNO’s offer document contains no substantial new information or arguments to support its Offer," said the statement.

"DNO’s unsolicited offer ignores Faroe management’s proven track record and the Company’s exciting independent future, which has been further enhanced by the recently announced Equinor asset swap," it added.

John Bentley, Faroe’s nonexecutive chairman commented, "DNO's highly opportunistic offer is not only at a substantial discount to the value of the Company but also at a substantial discount to comparable portfolio transactions and a substantial discount to the average of all U.K. takeovers in the last 10 years.”

"Faroe is widely regarded as one of the preeminent North Sea E&P companies with a high quality, full cycle and diversified asset base and a management team that, time and again, has demonstrated its ability to create value through exploration and active portfolio management. As such, Faroe would solve DNO’s strategic challenges and Faroe shareholders should receive an appropriate premium which is not currently reflected in DNO’s offer,” he added.

Earlier, DNO published details of its hostile cash offer for Faroe, calling it a "rare opportunity" for shareholders to exit the company.

DNO, which already owns 28 percent of Faroe, is offering 152p per share offer for Faroe, a 21 percent premium to Faroe's price the day before the offer was made in November.

Categories: People & Company News Legal Finance Mergers & Acquisitions Offshore Energy

Related Stories

PTTEP Hires Velesto’s Jack-Up Rig for Drilling Campaign off Malaysia

Yinson Production Secures $1.17B Refinancing for FPSO Maria Quitéria

Japan Protests China’s New Oil and Gas Construction Activities in East China Sea

Yinson Production, “K” LINE Target Europe's CCS with FSIU and LCO2 Solutions

MODEC and Terra Drone Renew FPSO Drone Inspection Partnership

Chuditch Gas Field Drilling Ops Get Delayed to Next Year

ABL Lands Work on BP’s Indonesian Gas and CCUS Project

OMV Exits Ghasha Gas Project off UAE with Lukoil Stake Sale

Keel Laying for Wind Flyer Trimaran Crew Boat

Argentina YPF to Shed Offshore Exploration Projects

Current News

One Shelf Drilling Rig Up for New Job in India, Other for Disposal

Four Jack-Up Drilling Rig Deals Set to Bring In $129M for Borr Drilling

PTTEP Hires Velesto’s Jack-Up Rig for Drilling Campaign off Malaysia

Yinson Production Secures $1.17B Refinancing for FPSO Maria Quitéria

Centrica and Thailand’s PTT Ink Long-Term LNG Supply Deal

Petrovietnam, Partners Sign PSC for Block Off Vietnam

Japan Protests China’s New Oil and Gas Construction Activities in East China Sea

CNOOC Signs Hydrocarbons Exploration and Production Deal with Kazakhstan

Thailand's PTT to Buy LNG from Glenfarne's Alaska LNG Project

Woodside and Jera Agree LNG Cargoes Supply for Japan’s Winter Period

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com