Shareholders win as Dragon Oil bid raised
Emirates National Oil Company (ENOC) has secured backing from key shareholders after bowing to pressure by raising its bid for Ireland-based Dragon Oil yesterday.
ENOC lifted its offer to buy the 46pc minority stake in Dragon Oil that it did not already own, to 800 pence a share from 750 pence. The stock closed at 733 pence on Friday. The new bid values Dragon Oil at around £3.9bn (€5.5bn).
The new offer follows a stand-off with a group of Dragon Oil investors that had rejected the previous bid, made in June, as too low.
Yesterday Dragon Oil shareholders Baillie Gifford and Elliot Advisors, who had opposed the 750 pence-a-share offer, backed the new bid, ENOC said, boosting the chances a deal will now be done.
Elliott and Baillie Gifford hold a combined 13.1pc stake in Dragon Oil.
Dubai-based ENOC had previously tried and failed to take full control of Dragon Oil.
If the current bid succeeds it will delist Dragon Oil from the London and Dublin exchanges.
"We look forward to taking operational control of Dragon Oil and integrating the company into the ENOC Group, moving another step closer towards creating a fully integrated oil and gas company," Saif Al Falasi, group chief executive of ENOC, said in the statement.
ENOC's new offer is unconditional and final.