The £3.7bn offer by Emirates National Oil Company for Dragon Oil has been branded too low by one of the company’s leading shareholders.
ENOC owns nearly 54% of Dragon - which produces oil from Turkmenistan - but needs a majority of the other shareholders to approve its bid, its second in six years. Baillie Gifford, which holds 7.2% on behalf of clients, said the 750p a share offer “materially undervalues the company’s strong growth potential and encourage shareholders to reflect on the growth infrastructure that is presently being assembled.”
A spokesman for ENOC immediately responded:
We are confident that our recommended offer of 750 pence is full and fair as it represents an attractive exit opportunity for all minority shareholders.
...The offer price was derived based on extensive feedback from numerous shareholders, and the independent committee of Dragon Oil, which has stated that the recommended offer reflects the achievements and future prospects of the Dragon Oil group. We continue to work towards delisting Dragon Oil at the acceptance threshold, which is equivalent to approximately 23% of Dragon Oil’s share capital.
Dragon’s shares are currently down 4p at 724p.
