Norway's DNO to buy Capricorn Energy in $396m deal
Capricorn Energy said on Tuesday that it has agreed to be bought by Norwegian oil company DNO in a $396m (£292m) deal that trumps an offer by Genel Energy.
Source: Sharecast
DNO will pay $5.214 in per Capricorn share. This comprises $4.224 in cash and a special dividend of $0.99. That equates to around 384p per share, which is a 45% premium to the closing share price on 10 March, the day prior to the start of the offer period.
It’s also higher than the offer made by Genel, which announced in September that it had agreed to buy Capricorn for $4.74 per share.
Capricorn chief executive Randy Neely said: "We are pleased to recommend this higher all cash offer from DNO. It maximises the value created by the Capricorn team and importantly increases the return for shareholders."
DNO executive chairman Bijan Mossavar-Rahmani said: "Today marks an exciting chapter in DNO’s 55 year growth story as we move to acquire a high quality portfolio of oil and gas assets in Egypt.
"Capricorn will add another business with scale, cashflow and growability to our existing operations in Kurdistan and the North Sea. With three core areas, each with its own geology, geography and geopolitics, DNO will be a more diversified and stronger company.
"DNO has ambitious plans to build a significant Egyptian business through investment in Capricorn’s portfolio, participation in new license rounds and additional acquisitions. DNO’s technical capability, financial strength and can-do attitude will fuel that growth."
At 1320 BST, the shares were up 9.1% at 374.10p.
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