12th Dec 2018 14:29
LONDON (Alliance News) - Faroe Petroleum PLC on Wednesday said it noted DNO ASA's offer and encouraged its shareholders to take no action.
The oil & gas company reaffirmed that DNO's GBP608 million offer is "opportunistic" and "substantially" undervalues Faroe.
Early on Wednesday, Norwegian firm DNO said its hostile takeover offer for Faroe is a "rare opportunity" for shareholders to exit the company.
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.
Faroe shares were trading 0.4% lower on Wednesday afternoon at 152.40 pence each, having risen to 154.40p in early trade.
"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