ENOC has agreed to snap-up the remaining stake of Dragon Oil – a move which saw the firm’s shares jump by 8%.
ENOC and Dragon settled on a £3.7billion price-tag for the company and a further £1.7billlion for the shares not already owned by ENOC – breaking down to £7.50 per share. The deal was agreed after lengthy negotiations between the two parties.
The figure is a significant increase on the previous failed offer of £4.55 per share.
ENOC chief executive Saif Al Falasi said: “Following our announcement on 21st May, outlining a possible cash offer for Dragon Oil, we met with a number of shareholders in order to give them the opportunity to provide feedback. As a direct result of these discussions, we decided to further improve our Offer to 750 pence per share, which the Independent Committee at Dragon Oil has recommended.
“As a long term and supportive shareholder, we appreciate Dragon Oil’s achievements to date. We believe that Dragon Oil has now achieved as much as is possible through its existing upstream strategy. Moreover, with production close to plateau at its sole producing asset and with an uncertain market backdrop, this Offer provides Dragon Oil’s minority shareholders certainty and a clear opportunity to realise significant cash today.
“ENOC’s board and I have great respect for the board and management of Dragon Oil and we look forward to working with them and the Independent Committee on successfully completing this recommended offer.”
Thor Haugnaess, chairman of the independent committee, which helped broker the deal, dubbed the final offer an “attractive price”.
He added: “The independent committee believes that ENOC’s cash offer, which is the result of extensive negotiations between the Independent Committee and ENOC, reflects the achievements and future prospects of the Dragon Oil Group and offers Dragon Oil minority shareholders an opportunity to exit at an attractive price.”
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