Dana Petroleum has been under a takeover threat since June from Korea National Oil Corporation (KNOC). The original bid from the government owned company was for 1.7 billion pounds which board members rejected saying it was under valuing the company. KNOC then went straight to shareholders in an attempt to secure 90 per cent of the shareholders to sell.
Friday evening KNOC bought up 30 per cent of Dana’s shares. They have until next Thursday for shareholders to confirm sales if their stock. Despite Dana’s continued defense that the shares are worth more than KNOC is offering; KNOC refuses to raise its offer yet shareholders are biting the low bid offer.
KNOC’s offer is at 18 pounds per share. Dana sees a fair offer to be between 21.20 and 24.65 pounds per share. Dana has stated they are in a “transformational growth period” and have continued to urge strongly that their shareholders reject the KNOC offer.
Dana is hoping another bidder will step up. However many believe the takeover is all but done with the company acquiring the 29.5 per cent of shares on Friday. They stopped short of going over 30 per cent or that would have triggered an offer for the company and reset the timetable for acceptance. The shares also pretty much prevent a rival bidder from stepping in at this point.
An analyst with Oriel Securities said: “”Dana is gone and has been gone for several weeks. The chances of a competing bidder were zero anyway. This is just moving that process forward. We expect at the first close for the deal to have gone through.”
The deal is seen as one of many to come as countries seek to secure greater shares of energy supplies.