From the Field
Faroe accepts updated DNO offer
ABERDEEN, January 9, 2019 – Faroe Petroleum has accepted DNO’s latest acquisition bid after a protracted hostile takeover battle, the Aberdeen-based company announced on Wednesday.
On Tuesday, DNO increased its offer from GBP 1.52 per share to GBP 1.60 per share, implying a value of about GBP 642 million for the fully diluted share capital of Faroe.
“Whilst the board does not believe the final offer represents fair value, the board recognises that, as set out above, the offer will be declared wholly unconditional upon settlement of the further share purchases made by DNO and DNO will therefore acquire statutory control of Faroe,” Faroe said, noting that “following further purchases of Faroe shares, DNO owns or has received acceptances for a total of 195,526,068 Faroe shares, representing approximately 52.44 percent of the ordinary issued share capital of Faroe.”
Faroe’s board now recommends that shareholders accept DNO’s final offer, the statement added.