Wednesday 21 February 2018

Emirates National Oil extends €5.2bn offer for Irish-listed Dragon Oil newsdesk

Emirates National Oil Company (ENOC) has extended its offer to buy the shares in Irish-listed oil explorer Dragon Oil that it does not own after failing to get enough support from minority shareholders.

ENOC, which owns 54pc of Dragon Oil, offered 750 pence per share to buy out minority shareholders of the firm in June. The proposal values Dragon Oil at about £3.7bn (€5.2bn).

ENOC has said that it is extending its buyout offer from the end of July to August 28  after receiving about 14.5pc of the issued share capital,

This represents about 30pc of the stake held by minority shareholders. Under Irish takeover rules the firm needs a majority of Dragon Oil's minority shares to agree to sell for the deal to go through.

ENOC plans to delist Dragon Oil if its takeover bid is successful.

Several Dragon Oil shareholders, including 7.1pc stake owner Baillie Gifford and Setanta Asset Management, which owns about 3.1 per cent, have voiced their opposition to the proposed sale. They claim that the price on offer undervalues the company.

Earlier in this month ENOC said that it will no longer support payment of dividend to shareholders, stepping up the pressure in its bid to take over the company.

ENOC's majority stake in Dragon Oil would allow it to vote down any proposal to pay dividends at the company's annual general meeting.

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