Advisers recommend Dragon Oil takeover

06 December 2009

Emirates National Oil Company values oil and gas firm at $3.9bn

Financial advisers to shareholders of London-listed oil and gas firm Dragon Oil have recommended that they approve a takeover by the UAE’s Emirates National Oil Company (Enoc).

In a 2 December joint statement Dragon Oil and Enoc said that advisers from the UK’s HSBC bank and Ireland’s Davy Finance recommended the deal be approved at Dragon’s extraordinary general meeting on 11 December.

Enoc offered 455 pence ($7.5) per share for the 48.5 per cent of the company that it does not already own on 3 June. On 2 November it said that it would not raise its $1.8bn bid for the shares, which values the company at a total of around $3.9bn.

Dragon Oil shares were trading at 410 pence per share on the London Stock Exchange marking a market capitalisation of £2.1bn ($3.5bn) at the close of business on 4 December.

The companies also moved to quell rumours that Enoc planned to sell its stake in the company if its takeover bid is not successful. Enoc promised not to sell or accept any offers for its 51.5 per cent shareholding in the company before 31 December 2011.

Enoc is wholly-owned by the Dubai government and focuses on refining and marketing oil and gas in the emirate and abroad. Dragon Oil is an exploration and production firm with key assets in the Turkmenistani Caspian Sea .

Enoc declined to comment on any problems it might have raising debt for the deal following the Dubai government’s announcement that it would not shoulder responsibility for money owed by another government vehicle, the real estate and ports conglomorate Dubai World.


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