7th Aug 2026 11:45
(Alliance News) - Genel Energy PLC on Friday said that a takeover approach by Oslo-based oil and gas operator DNO ASA "fundamentally undervalues" the company.
DNO ASA, an Oslo-based oil and gas operator, on Friday morning had confirmed it approached Genel Energy PLC last week with a possible cash offer, which Genel rejected on Tuesday.
Jersey-registered Genel is an oil producer in the Kurdistan region of Iraq and an explorer in Oman and Somaliland.
Genel said: "The board of Genel, having evaluated the possible offer together with its advisers, has unanimously rejected the proposal, strongly believing that the possible offer fundamentally undervalues Genel. Genel shareholders are advised to take no action in response to the possible offer."
The possible offer values Genel at 69 pence per share, or GBP202 million in total. It would be a 38% premium to Genel's closing share price of 49.95p on Thursday.
Further, under an alternative offer, Genel shareholders would be able to elect to receive a combination of cash and newly issued DNO shares equivalent in value to the indicative cash offer.
In response to the news, Genel shares jumped 22% to 61.00 pence each on Friday morning in London, giving the company a market cap of GBP170.4 million.
Despite Genel's board rejecting the approach on Tuesday, DNO said it remains willing to engage with the board on the proposal.
In July, Genel struck a deal to acquire Capricorn Energy PLC for USD360 million. A vote by Capricorn Energy's shareholders to approve the scheme is expected to take place on August 18. However, Capricorn received a rival takeover approach from Samos Energy later in July.
DNO has until September 4 to announce either a firm intention to make an offer for Genel, or walk away.
By Tom Budszus, Alliance News slot editor
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