Faroe says no: – DNO's candidacy is opportunistic

In a press release issued Monday afternoon, Faroe Petroleum writes that the hostile offers of DNO are opportunistic, that the price is too low and that shareholders should not do anything.

"We believe that Faroe is worth more than 152 pence in cash per share and we urge shareholders to reject opportunistic, undesirable and inappropriate offers of DNO," said Fergus chairman John Bentley.

On Monday morning, it became clear that DNO had attempted to guarantee total control of Faroe through an offer to buy the competitor's remaining shares.

The offer is 20.8% higher than the price that Faroe shares had on Friday. In total, the oil company is valued at NOK 6.7 billion. When DNO deducts the shares that the company already holds, the offer amounts to 4.9 billion Swedish kroner (443.8 million pounds sterling).

In his press release, Faroe writes that the DNO offer does not recognize his promising future as an independent company. Faroe writes that since DNO bought its first shares on April 4, exploration, development and development in general have grown considerably.

Faroe points out, among other things, that the Iris / Hades and Agar discoveries have borne fruit in 2018. The company has also launched a major drilling campaign which it says could provide important resources and discoveries. from here 12 months. Faroe writes that, in terms of production and economically, they have big plans for growth. Among its goals, Faroe aims to produce 35,000 barrels a day in the near future.

– We believe that the offer of DNO does not recognize these qualities and the fair value of their shares, writes Faroe in a message to shareholders.

Faroe Petroleum points out that the offer only provides for a premium of 1%, calculated on an average of three months, and only 21% at the closing price of 23 November. This is far below the average of the UK's hostile acquisitions over the past ten years, at 43%.

"Faroe Islands would solve the strategic problems of DNO, and shareholders should receive an appropriate payment, which does not reflect the offer of DNO, writes the company.

Read the full announcement of the Faroe Petroleum Stock Exchange here.

READ ALSO: