4th Sep 2026 16:36
(Alliance News) - Genel Energy PLC on Friday defended its lack of engagement with Norway's DNO, and its rejection of the latter's takeover approach.
Oslo-based oil and gas operator DNO ASA made a 69 pence per share takeover approach in August, valuing Genel at GBP202 million. Genel, an exploration and oil production company with production assets in the Kurdistan Region of Iraq, and exploration assets in Oman and Somaliland, dismissed the proposal on the grounds that it "fundamentally undervalues" the business.
DNO confirmed that it would not be making a takeover bid on Friday morning, saying that Genel had "demonstrated no willingness to engage" since it tabled the possible offer.
"As a result, Genel shareholders were denied the opportunity to consider a proposal that offered a substantial premium, certainty of value and an attractive liquidity event," DNO claimed.
Genel issued a statement on Friday afternoon in response.
"The board of Genel remains firmly of the view that the possible offer fundamentally undervalued Genel, its asset base, financial position and prospects, and that it provided no basis for engagement with DNO," the company said.
It added that it "continues to represent a compelling investment proposition," and that the board remains confident in its strategy and prospects for long-term value creation.
Genel highlighted its "strong balance sheet," with cash of USD240 million as of July 31; its 25% working interest in the "large-scale, low-cost and highly cash-generative" Tawke licence; its "disciplined deployment of excess capital to diversify and strengthen [its] future cash generation"; the further de-risking of its organic portfolio; and its return to exports in Kurdistan, which it believes could "more than double the revenue generation from Tawke".
Earlier in the week, Edinburgh-based oil and gas company Capricorn Energy PLC recommended that shareholders accept an offer from DNO, which valued each share at USD5.214 and the company at around USD396 million. This represented a 10% premium to the offer agreed with Genel in July.
Shares in Genel were down 12% at 56.00 pence on Friday afternoon in London. Shares in Capricorn were down 0.3% at 382.00p each.
By Emma Curzon, Alliance News reporter
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