Dragon Oil to delist from the Irish Stock Exchange after ENOC €5.5bn buyout
Emirates National Oil Co will delist Irish-listed oil and gas explorer Dragon Oil from the London and Irish stock exchanges after successfully completing its takeover of the company.
ENOC, which owns 54pc of Dragon, offered 750 pence per share to buy out minority shareholders of the firm in June. ENOC then raised its bid for the company to 800 pence after bowing to pressure from some shareholders who argued that the offer price was too low.
The new bid valued Dragon at around £3.9bn (€5.5bn).
This morning ENOC announced that its offer has been accepted by 24pc of Dragon's total share capital, or 51.5pc of outstanding shareholders.
Under Irish takeover rules ENOC needed a majority of Dragon's minority shareholders to agree to sell for the deal to go through.
ENOC said: “ENOC has requested and directed Dragon Oil to commence the delisting process of Dragon Oil immediately.
“Pursuant to the Listing Rules and the listing rules of the Irish Stock Exchange, Dragon Oil announces that the delisting notice period has now commenced and it is anticipated that delisting will take effect from 8:00 a.m. (Dublin time) on 7 September 2015.
“Consequently, the last day of trading of Dragon Oil Shares on the Irish Stock Exchange and London Stock Exchange would be 4 September 2015.”
Dragon also announced results for its second quarter this morning which saw revenue fall by18pc to $449m compared to $547m in the same period last year as it was hit by the sharp international fall in oil prices.
Profits also dropped by 52pc from $289m to $139m although production rose to 92,060 barrels of oil per day (bopd) compared to 73,440bopd per day in 2014.
Dragon chief executive Dr Abdul Jaleel Al Khalifa said: “Gross production has increased compared to the level in 1H 2014 on the back of strong initial flow rates from new development wells, additional perforations in certain existing wells and the application of jet pumping systems.
He added: “The significant decline in crude oil prices is reflected in the financial results."