21st May 2015 16:14
LONDON (Alliance News) - Emirates National Oil Company Ltd Thursday proposed a potential takeover offer valuing Dragon Oil PLC at GBP3.6 billion.
In a statement, Emirates National Oil Co said the proposal values Dragon Oil at 735 pence per share.
Shares in Dragon Oil closed up 5.4% at 680p on Thursday.
The proposal comes after talks between Emirates National Oil Co and the independent committee of the board of Dragon Oil.
Emirates National Oil Company has a 53.9% stake in Dragon oil.
"We believe the proposal is full and fair and provides an excellent opportunity for Dragon Oil's shareholders to realise significant value today. There is great uncertainty in the sector and we believe, as a long term and supportive shareholder, that Dragon Oil has achieved as much as is possible through its existing upstream strategy. Moreover, Dragon Oil stands to benefit significantly from being part of the integrated platform that ENOC offers. To that end, we want to ensure that all of Dragon Oil's shareholders have the opportunity to evaluate the proposal on its merits," Emirates National Oil Chief Executive Saif Al Falasi said in a statement.
"Our strategic vision is to become a leading oil and gas company by expanding our presence in international markets and establishing an exploration and production portfolio," the CEO added.
Emirates National Oil Company said the next stage in the process is to meet with other shareholders in Dragon Oil to discuss the proposal.
In a statement, Dragon OIl said its independent board committee is considering the proposal.
"The proposal is subject to various pre-conditions and there can be no certainty that an offer will ultimately be forthcoming or of the terms on which any offer might be made," Dragon Oil said.
By Samuel Agini; [email protected]; @samuelagini
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