ENOC raises offer for Dragon Oil takeover

Revised bid backed by required majority of stakeholders

ENOC CEO Saif Humaid Al Falasi.
ENOC CEO Saif Humaid Al Falasi.

Emirates National Oil Co (ENOC) on Sunday raised its bid to take over Dragon Oil, Reuters reports.

ENOC increased its offer to 800 pence per share from 750 pence per share previously.

The proposed price has won the support of the required majority of Dragon Oil shareholders, the company said in a statement on Sunday, adding that the offer was its best and final bid.

ENOC, which currently owns a majority 54% stake in Dragon Oil, needed the backing of another 23% of the company's shareholders for the deal to go through.

ENOC said it had achieved 29.92% shareholder acceptance and intended to delist the firm shortly, the Reuters report said. 

"With the level of acceptances now received, we have declared the offer unconditional in all aspects," said ENOC newly appointed chief executive Saif Al Falasi.

Dragon Oil's second-largest shareholder, Baillie Gifford, who opposed the deal at ENOC’s initial offer of 750 pence per share, said: “We are now pleased to support the revised offer of 800 pence, which we believe represents an attractive exit price.”

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