ENOC secures Dragon Oil takeover

The Emirates National Oil Company (ENOC) has moved into the final stage of acquiring full ownership of Dragon Oil. ENOC has gained approval to purchase at least 90.1 percent of the shares it does not already own, thereby surpassing the threshold to legally compel outstanding interest holders to sell.

ENOC, the integrated energy company owned by the Dubai government, previously held a 54-percent stake in Dragon Oil, and launched an effort in early 2015 to takeover the independent upstream company.

On Friday, ENOC announced it had received acceptance for 41.9-percent of the company’s total share capital, representing more than 90.1 percent of its takeover offer. Holders of the remaining 4.4 percent share capital have until September 14 to sell at will, after which point it becomes compulsory.

ENOC has had to raise its share offer twice in order to secure the deal. The final share price was settled at £8, an increase from the £7.35 ENOC initially offered, and up again from the £7.50 it proposed in June.

Dragon Oil’s operations concentrate on the Cheleken Contract Area offshore Turkmenistan, from which it yields around 100,000 barrels of oil per day. However, the company has recently acquired assets in Iraq, Egypt, Algeria and Afghanistan.