ENOC Presses Ahead with Dragon Oil Takeover amid Shareholder Protest

Reuters

LONDON, July 1 (Reuters) – Emirates National Oil Company (ENOC) is progressing with its 1.7 billion pound purchase of Dragon Oil shares it does not already own, despite a major investor saying the takeover undervalued the company.

ENOC published its offer document on Wednesday, showing the deal is moving ahead, and shareholders have until 1400 GMT on July 30 to agree to the terms, ENOC said.

Dragon Oil's second-largest shareholder, asset management company Baillie Gifford, said two weeks ago the offer was not high enough. It demanded the deal should include a contingent payment note based on Dragon Oil's flagship Cheleken area oil fields in Turkmenistan hitting certain production milestones.

"We see no need to offer a contingent payment note or any similar cumbersome mechanism given the plateau in Dragon Oil's production," an ENOC spokesman said in a statement.

On June 15, Dragon Oil agreed to ENOC's offer to buy out minority shareholders for 750 pence per share, increasing an initial offer made in May that had been rejected.

ENOC, which is owned by the government of Dubai, failed to buy Dragon Oil in a first attempt in 2009 after minority shareholders rejected a bid.

(Reporting by Karolin Schaps, editing by Louise Heavens)

 

Copyright 2017 Thomson Reuters. Click for Restrictions.

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE



Most Popular Articles

From the Career Center
Jobs that may interest you
Sales Manager - Safety Relief Valves
Expertise: Business Development|Sales
Location: Houston, TX
 
Associate Land Surveyor-Carlsbad, NM Job
Expertise: Landman|Surveying
Location: Carlsbad, NM
 
Contract Specialist
Expertise: Contracts Administration|Legal
Location: Houston, TX
 
search for more jobs

Brent Crude Oil : $50.75/BBL 0.09%
Light Crude Oil : $47.73/BBL 0.50%
Natural Gas : $3.05/MMBtu 0.97%
Updated in last 24 hours