Pendragon Ends DNO Acquisition Talks
DNO ASA on Thursday received the following information from one of its shareholders: Information on the stock market from Pendragon Capital LLP concerning DNO ASA:
Toward the end of 2006, Pendragon, in its capacity as manager of funds holding shares in DNO, was approached by a consortium of credible international strategic and financial investors who expressed an interest in acquiring DNO. Pendragon attended various meetings with the consortium's financial and technical advisers in order to guide them in the initial stages of their analysis and later to consider the consortium's valuation proposal.. The bid range proposed by the consortium was deemed to be attractive and therefore the consortium's advisers proceeded with due diligence in the first quarter of 2007, using various sources available to them as serious industry participants but without access to any internal DNO data. It was communicated to Pendragon early in the second quarter of 2007 that this process had enabled the consortium to confirm their valuation in the same range, and that debt financing had been successfully arranged.
In light of significant anticipated newsflow and considering the recent oil discovery in a lower zone of the Tawke field, Pendragon recently asked the consortium to confirm their intentions. Pendragon was informed that all but one member of the consortium were ready to make a formal bid, but that one member wishes to await the outcome of certain developments before deciding whether to proceed.
Accordingly, Pendragon was not willing to continue discussions with the consortium and makes this announcement to inform the market that Pendragon has terminated these discussions.
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