DNO Bid Undervalues Faroe by 48 %

Laxman Pai
Thursday, January 3, 2019

North Sea player Faroe Petroleum published an independent valuation of its assets by Gaffney, Cline & Associates (GCA), which is said to highlight the inadequacy of DNO ASA's GBP608 million at 152p per share takeover offer.

Faroe Petroleum could be worth more than USD1bln (GBP800m) according the review that values the company well above the bid made by Norwegian oil giant DNO. The findings imply a valuation for Faroe itself in the range of 186 pence to 225p per share, representing a 22% to 48% premium to DNO's offer price of 152 pence.

The calculation reflects current market oil pricing and "further reinforces the board's view that DNO's offer is opportunistic and substantially undervalues Faroe", the group added.

John Bentley, Faroe’s chairman, said the independent valuation “clearly supports” the board’s view that the offer “substantially undervalues” the company. In addition, Faroe completed the drilling of the Brasse East well and Brasse Appraisal side-track.

DNO, which has built up a 29.9% stake in Faroe, said last week its cash deal was “full and fair, even generous”. Faroe had until January 20 to weigh in with material new information on the DNO bid.

Categories: Offshore Finance Mergers & Acquisitions Offshore Energy

Related Stories

Yinson, PTSC Get $600M Contract for Vietnam-Bound FSO

PTTEP Buys Chevron's Hess Unit Share of Southeast Asia’s Offshore Block for $450M

China Starts Production at Major Oil Field in Bohai Sea

China Rolls Out 17MW Floating Wind Turbine Prototype

EnQuest Acquires Harbour Energy’s Vietnamese Assets

Woodside Finds South Korean Partners to Advance LNG Value Chain

Fugro Expands Geotechnical Testing Capabilities in Indonesia

Fugro Lands Deepwater Gas Field Job in Southeast Asia

OMV Exits Ghasha Gas Project off UAE with Lukoil Stake Sale

Scarborough FPU's Topsides and Hull Come Together in Major Engineering Feat (Video)

Current News

BP, ONGC, Reliance Industries Ink Deal for Offshore Exploration in India

Allseas-Boskalis Consortium Bags $1.4B Offshore Gas Pipeline Job in Taiwan

CNOOC Brings New Offshore Gas Field On Stream

Yinson, PTSC Get $600M Contract for Vietnam-Bound FSO

PTTEP Buys Chevron's Hess Unit Share of Southeast Asia’s Offshore Block for $450M

Valeura Energy, PTTEP Partner Up on Gulf of Thailand Blocks

Sapura Scoops Over $118M for Chevron, PTTEP Subsea Ops off Thailand

Pandion Energy Divests Interests in Three Norwegian Assets to Inpex

China Starts Production at Major Oil Field in Bohai Sea

Dutch Contractor Completes Malaysia’s Largest 'Rig-to-Reef' Decom Project

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