DNO has passed a key milestone in the takeover of Aberdeen-based Faroe Petroleum after declaring its hostile offer had become unconditional. The Norwegian company also moved close to being able to cancel trading of Faroe’s shares on the AIM stock market.
Oslo-based DNO said following the settlement of purchases made on Wednesday, it had backing for the takeover in respect of 64.41 per cent of the share capital in Faroe, against a target of 50%. DNO increased its offer from 152p per share to 160p 152p last Tuesday, putting a £640 million valuation on Faroe. It faced renewed claims from Faroe’s directors that the bid undervalued the company, which has developed an extensive North Sea portfolio.
DNO said yesterday it had acquired shares representing a further 9.76% of Faroe’s share capital, in transactions expected to settle by the market close today. That put it on course to have control of 74.17% of Faroe’s capital against the 75% needed to start the process for the cancellation of trading in the shares on AIM.
On Friday Faroe said chief executive Graham Stewart, chief financial officer Jonathan Cooper and chief operating officer Helge Hammer had given notice of their intention to quit, triggering the vesting of options awards they held worth around £18.6 million.
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