Dragon Oil’s largest minority shareholder rejects Enoc offer | The National:
"The largest minority shareholder in Dragon Oil rejected the latest offer from Emirates National Oil Company, which is attempting for the second time in six years to buy the Dublin-listed company outright.
Baillie Gifford, a fund manager based in Edinburgh, Scotland which owns just over 7 per cent of Dragon Oil, said that Enoc’s latest offer “materially undervalues” Dragon Oil, which it argues has the potential to double production at its main asset – the Cheleken oilfield in Turkmenistan – over the next 10 years.
If it were to achieve that rate, Baillie Gifford argued, “this would represent one of the fastest production growth rates of any listed oil company in the world”. Enoc on Monday raised its offer for the third time in three months, offering 750 pence a share to buy the 46 per cent of Dragon Oil that it does not already own. That would value the entire company at about £3.7 billion (Dh21.62bn) and was up from an offer of 735 pence in May and an initial offer of 650 pence in early March, when the shares were trading at 509 pence.In trading yesterday, Dragon shares were at 723.50 pence, not far off their 52-week high of 728 pence apiece. Baillie Gifford successfully rallied investors in 2009 to block an earlier bid by Enoc to buy out Dragon Oil."
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