Capricorn Energy (LSE:CNE) shares fell after DNO ASA confirmed it will not increase its revised all-cash offer of $5.214 per Capricorn share following a higher competing proposal from Genel Energy (LSE:GENL).
DNO and its subsidiary DNO Bidco said on 28 September that the financial terms of their revised offer are final and will not be increased. The announcement follows DNO’s revised all-cash proposal announced earlier in September.
DNO Rules Out Higher Capricorn Bid
DNO said it would maintain its approach to mergers and acquisitions and confirmed that it will not elect to implement its proposed acquisition through a contractual offer.
The decision follows Genel Energy’s increased cash proposal for Capricorn announced on 25 September. Genel increased its offer to $5.74 per Capricorn share, valuing Capricorn’s fully diluted issued share capital at approximately $436 million.
Genel Bidco has secured irrevocable undertakings representing approximately 39.1% of Capricorn’s issued share capital, according to DNO’s statement.
Competing Offers Remain in Focus
DNO said it continues to evaluate investment opportunities across the North Sea, the Kurdistan Region of Iraq and other markets.
The Norwegian company also said it has had positive interactions with Egyptian authorities in connection with its Capricorn proposal and continues to consider potential investments in Egypt.
DNO additionally noted its existing relationship with Genel through the Tawke licence in the Kurdistan Region of Iraq, where the two companies are partners.
With DNO stating that its $5.214-per-share terms are final, its proposal remains below Genel’s $5.74-per-share cash offer. The competing proposals remain subject to their respective terms, conditions and applicable takeover processes.
About Capricorn Energy
Capricorn Energy is a UK-listed oil and gas exploration and production company with operations focused on Egypt.
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