31st Jul 2015 07:29
LONDON (Alliance News) - Emirates National Oil Co Ltd Friday said it has extended its offer to acquire Dragon Oil PLC until late August and said it holds nearly 70% of the total issued share capital of Dragon.
Emirates, which is owned by the government of Dubai, is already Dragon Oil's majority shareholder, and the offer for the stake it doesn't own is worth about GBP1.7 billion in total. It said its offer is 47.2% above Dragon Oil's share price on March 13, the day before it first approached Dragon Oil.
The offer values the whole of Dragon Oil at around GBP3.7 billion.
The company first approached Dragon about a possible acquisition of the stake it didn't already own in March, when it put forward a possible offer of 650.0 pence a share before making a revised possible offer of 735.0 pence per share in May.
The companies have now agreed terms and the takeover offer was due to remain open until Friday, but this has now been extended until August 28, said Emirates Friday.
Emirates said it has received acceptances of 14.5% of the issued share capital of Dragon, representing around 30.8% of the total voting rights. The company has also received "intended acceptances" of around 2.3% of the share capital of Dragon.
Once the acceptances and its existing stake in Dragon Oil have been combined, Emirates hold a total of 336.6 million Dragon Oil shares on Friday, representing a 68.2% of the total issued share capital.
Dragon Oil shares were trading flat on Friday morning at 722.0 pence per share.
By Joshua Warner; [email protected]; @JoshAlliance
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