Genel Energy Rejects DNO's $202 Million Takeover Bid
Norwegian rival DNO revealed it made an unsolicited offer for the London-listed oil producer, which Genel's board deemed insufficient.
London-listed Genel Energy has rejected an unsolicited takeover bid from Norwegian rival DNO, which had valued the company at £202 million ($202 million USD). DNO, an operator with assets in the Middle East and North Sea, publicly disclosed its offer after Genel's board turned it down.
DNO stated it made the 69 pence-per-share offer on July 28. Genel Energy rejected the proposal on August 4, though it represented a 38% premium to the company's closing price at the time. DNO expressed its willingness to continue engaging with Genel's board regarding the proposal.
The Norwegian company also put forward a cash-and-shares alternative offer of equivalent value. DNO indicated this alternative would be funded through its existing share authorities, which have already received shareholder approval, and would not require additional shareholder consent.
Shares in Genel saw a rise of 22%, reaching 61 pence, recovering its year-to-date losses of 17%. This move follows Genel's agreement in principle last month to acquire Egypt-focused Capricorn Energy, also listed in London, for £268 million, despite other potential suitors for Capricorn.
DNO clarified that its offer is not contingent on the outcome of Genel's potential acquisition of Capricorn Energy. The proposal, DNO said, offers value certainty regardless of the Capricorn deal's success, which could leave Genel without the diversification it has pursued. DNO suggested that a combined entity would create a larger operator in Kurdistan, a region where scale is considered essential due to ongoing security and commercial risks.