DNO ASA has revealed that its wholly owned subsidiary, DNO Iraq AS, submitted a non-binding proposal on 28 July 2026 to acquire the entire issued and to be issued share capital of Genel Energy (LSE:GENL). The indicative offer values the London-listed oil producer at approximately £202 million. Genel’s board rejected the proposal on 4 August. Under the terms of the approach, shareholders would be offered either 69 pence in cash for each share or an equivalent combination of cash and newly issued DNO shares. The proposal represents a premium of 38% to Genel’s closing share price before the announcement and 30% above its three-month average share price.
DNO Highlights Strategic Benefits of Potential Acquisition
DNO said the proposed acquisition would provide Genel shareholders with an opportunity to realise value despite uncertainty surrounding the company’s only revenue-generating asset. The Norwegian producer also argued that its proposal offers greater certainty for investors regardless of Genel’s ongoing bid for Capricorn Energy, while potentially improving liquidity for shareholders who have faced relatively limited trading volumes in Genel’s shares. If completed, the transaction would strengthen DNO’s position in the Kurdistan Region of Iraq by increasing production scale and diversification. The company also noted that shareholder approval from DNO investors would not be required to complete the acquisition.
Firm Offer Remains Uncertain
Despite disclosing the proposal, DNO emphasised that there is no guarantee a formal takeover offer will ultimately be made. Under the UK’s takeover regulations, the company has until 4 September 2026 to announce either a firm intention to proceed with an offer or confirm that it does not intend to make one.
About DNO ASA
DNO ASA is a Norwegian oil and gas exploration and production company with core operations in the Kurdistan Region of Iraq. The business focuses on developing hydrocarbon resources in politically and commercially complex markets while pursuing growth through a combination of exploration, acquisitions and operational expansion. DNO has also established a track record of returning capital to shareholders through regular dividend payments.
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