DNO Adds to Faroe Stake in Hostile Takeover Saga

Friday, January 4, 2019

Norwegian oil company DNO has achieved another slight increase to its stake in Faroe Petroleum, it said on Friday as it continues its battle for control of the British business.

DNO's combined ownership and bid acceptances now stands at 43.8 percent, up from about 43 percent on Thursday but still short of a controlling stake in London-listed Faroe.

It had previously required backing from 57.5 percent of Faroe shareholders to take control, but that fell to 50 percent on Thursday after it lifted its holding sufficiently to turn the bid from voluntary to mandatory and thus subject to takeover regulation requiring a lower threshold.

Faroe separately reiterated its view on Friday that the 610 million pound ($772 million) offer was inadequate, undervaluing the North Sea portfolio that DNO covets as it seeks to expand its operations, which are primarily based in the Middle East.

A report by oil industry analysts Gaffney, Cline & Associates, first released by Faroe on Wednesday, valued the Aberdeen-based company's shares at between 186 and 225 pence, a premium of up to 48 percent on DNO's offer price of 152 pence.

DNO's shares traded up 4 percent by 0843, supported by a 1.6 percent increase in the price of crude oil, while Faroe shares rose 0.5 percent to 154 pence.

Faroe shareholders have been set a Jan. 18 deadline to decide whether to accept DNO's bid.


($1 = 0.7899 pounds)

(Reporting by Terje Solsvik Editing by David Goodman)

Categories: Finance Mergers & Acquisitions Europe

Related Stories

Saipem’s Castorone Vessel on Its Way to Türkiye’s Largest Gas Field

Vestas Lands First 15MW Offshore Wind Turbine Order in Asia Pacific

Valeura Boosts Production at Jasmine Field with Five New Wells Now Onstream

Velesto’s Drilling Rigs Up for Automatization Overhaul Under New Tech Alliance

TotalEnergies and Oil India to Jointly Tackle Methane Emissions Issues

Nong Yao C Development Bolsters Valeura’s Production Rates Off Thailand

ABS Gives Its Blessing to SHI’s Ammonia FPSO Design

Shelf Drilling Finalizes Baltic Rig Sale

TotalEnergies Extends LNG Supply Agreement with CNOOC Until 2034

Korea's Hanhwa Sets Out Plan for Full Takeover of Singapore's Dyna-Mac

Current News

Petronas to Retain National Authority After Sarawak Gas Deal

Yinson Production Scoops $1B Investment to Upscale FPSO Business

Petronas Greenlights Hidayah Field Development Off Indonesia

Abu Dhabi's NMDC Group Gets $1.1B Subsea Gas Pipeline Job in Taiwan

BP Targets 44% Oil, 89% Gas Increase from India’s Mumbai High Field

US Operator Finds Oil Offshore Vietnam

BP to Help Boost Oil and Gas Output at India’s Largest Producing Field

Europe's Gas Uncertainty Help Drive Asian LNG Spot Prices Higher

CNOOC’s South China Sea Oil Field Goes On Stream

ADES’ Fourth Suspended Jack-Up Rig Gets Work Offshore Thailand

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