• Emirates National Oil Company (Enoc) has increased Dragon Oil takeover bid
  • More than half of minority shareholders have now accepted the offer
  • Enoc will now move to delist the company

Dubai’s Emirates National Oil Company (Enoc) has presented a revised takeover bid for Dubai-based Dragon Oil, increasing its offer from £7.50 ($11.7) a share to £8 a share.

Enoc will now pay about £1.8bn to shareholders, valuing Dragon Oil at £4bn.

More than half of minority shareholders by value have now accepted the offer, allowing the acquisition to go ahead.

Two minority shareholders had argued that the original offer, which had a 31 July deadline, undervalued Dragon Oil’s potential future production in Turkmenistan.

Both Edinburgh-based Baillie Gifford, which owns 7.1 per cent of Dragon Oil shares, and London-based Elliot Capital Advisors, which owns 6 per cent, accepted the new offer.

A total of 15.5 per cent of shareholders had already accepted the original offer, and other 1.3 per cent signalled their intention to do so. This meant 64.9 per cent of minority shareholders by value, or 29.9 per cent of the total, approved the takeover bid.

Enoc can now move to delist the shares from the Irish and London stock exchanges.

Dragon Oil reported 2014 profits of $579m, thanks to its full ownership of a production-sharing agreement (PSA) for oil and gas resources in the Cheleken area of the Caspian Sea, located in offshore Turkmenistan.

Its average daily production there was 94,450 barrels a day (b/d) of oil in May 2015.

Dragon Oil also owns exploration rights in Iraq, Algeria, Egypt, Afghanistan, Tunisia and the Philippines.

Enoc already holds 53.9 per cent of listed Dragon Oil shares. 

The firm made an offer worth £1.1bn, or £4.55 a share, in 2009, which was rejected by shareholders.

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