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DNO urges Faroe Petroleum shareholders to accept hostile takeover offer

Staff Writer | December 27, 2018
Norwegian oil & gas operator DNO ASA ourged Faroe Petroleum PLC's shareholders to accept its hostile takeover bid for the company by January 2.
Faroe Petroleum
Europe   DNO has offered 152 pence per Faroe share
DNO has offered 152 pence per Faroe share, a takeover bid which the UK and Norway-focused oil & gas company has always refused and deemed "opportunistic". Faroe, on multiple occasions, has said that the GBP608 million offer undervalues the company.

DNO currently holds an interest in 111.5 million Faroe shares, representing just below a 30% stake in the company.

DNO's bid reflected a 21% premium to Faroe's share price the day before the offer was made.

Faroe shares were trading down 0.5% at 151.21p each on Thursday.

DNO said the offer price is "full and fair, even generous".

January 2 represents the closing date for the offer, after which, if DNO does not receive sufficient acceptances for it to be unconditional, the offer will either lapse or can be extended.

Meanwhile, Faroe on Thursday reported disappointing results from the Cassidy exploration well in the Norwegian North Sea, in which it owns a 15% stake.

The company said the well encountered 13 metres of water bearing Jurassic Ula formation sandstones. It was drilled to a depth of 3,100 metres and it has now been plugged and abandoned as planned.