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Dragon Oil steps back from Petroceltic

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Staff writer ▼ | December 1, 2014
The board of Petroceltic International commented the fact that Dragon Oil no longer intends to make an offer for Petroceltic at this time, citing prevailing market conditions.
Dragon Oil
No acquisition   Market conditions are different now
In its proposal, dated July 3, 2014, Dragon Oil confirmed that it would be in a position to make an offer immediately following the satisfaction of certain pre-conditions. These conditions included satisfactory completion of due diligence which Dragon Oil envisaged would take no longer than six weeks from the date that information was made available by the company.

An extensive due diligence process commenced on July 22, 2014 and, on September 14, 2014, Dragon Oil confirmed to the company that it had completed its due diligence, and planned to seek an irrevocable undertaking to support its making of an Offer from its majority shareholder the Emirates National Oil Company (ENOC).

Petroceltic had stated in its announcement of October 6, 2014 that, subject to consultation with its shareholders, it would be willing to recommend an Offer at 230 pence sterling per share in cash if such an irrevocable undertaking was obtained from ENOC, given such Offer would be subject to the approval of Dragon Oil's shareholders.

Dragon Oil informed Petroceltic on November 30, 2014 that it no longer wished to make an offer at this time for the company, citing prevailing market conditions.