12th Dec 2018 10:53
LONDON (Alliance News) - DNO ASA on Wednesday said its hostile takeover offer for Faroe Petroleum PLC is a "rare opportunity" for shareholders to exit the company.
Despite Faroe having towards the end of November described DNO's GBP608 million offer as an "opportunistic" one that undervalues the company, Norwegian firm DNO has published the details of the offer.
DNO, which already owns 28% of Faroe, made a 152 pence per share offer for Faroe in November, a 21% premium to Faroe's price the day before the offer was made.
On Wednesday, Faroe was trading at 153.00p, flat on the day, having surged after the offer was made.
"This full and fair offer provides Faroe shareholders a rare opportunity to exit their relatively illiquid AIM-listed positions at an attractive price in a volatile and uncertain market for oil and equities," said Bijan Mossavar-Rahmani, executive chairman of DNO.
"DNO is paying a significant premium of 45% percent for Faroe on the basis of the unaffected share price on April 3, ahead of speculation about a possible DNO takeover," he added.
"Faroe has failed to deliver consistent shareholder returns over the last 15 years in part as a consequence of dilutive share issues, dilutive options schemes, and recent growth-dilutive asset transfers."
Acceptances for the offer must be received by 1300 GMT on January 2.
Related Shares:
Faroe Petroleum Plc