North Sea-focused oil & fuel agency Faroe Petroleum PLC on Monday confronted a hostile takeover bid from main shareholder DNO ASA, because the Norwegian agency made a GBP608 million supply on to fellow buyers.
Just after the market shut, Faroe stated it “strongly believes” the supply is “opportunistic” and “considerably undervalues” the corporate. The agency inspired shareholders to take no motion.
Shares in Faroe closed up 27% at 159.60 pence every.
DNO – which already has a 28% stake in Faroe – has made a 152 pence per share money takeover supply, valuing Faroe at GBP607.9 million.
The supply worth represents at 45% premium to the 105 pence share worth earlier than its preliminary share buy in April and 21% greater than Faroe's 125.eight pence share worth on the shut on Friday.
In response to the takeover bid, Faroe Petroleum stated the Norwegian agency didn’t have interaction with the corporate earlier than saying its supply.
But on Monday DNO described itself as “deeply disenchanted”, after Faroe “summarily rebuffed” its “affordable request final summer season for board illustration and constructive engagement”. Since then, its stake has been diluted by share awards to administrators.
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“DNO has each publicly and privately raised its considerations concerning the company governance tradition and shareholder worth methods at Faroe, however to no obvious avail by way of substantive and well timed actions,” DNO added in an announcement. “Against this backdrop, DNO has now determined proactively to deal with these considerations and shield its sizeable funding in Faroe by providing to accumulate all of the excellent shares in Faroe that DNO doesn’t already personal.”
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