OSLO // DNO International's shareholders approved a merger with RAK Petroleum's oil and gas units in the Middle East and North Africa after two months of wrangling over the issue.
At an extraordinary general meeting in Oslo yesterday, 77 per cent of shareholders voted in favour of DNO merging with majority shareholder RAK in exchange for DNO shares.
"This is a large and resounding endorsement by the shareholders of the company's board, the company's management and the company's direction and also of this merger," said Bijan Mossavar-Rahmani, the DNO chairman. "I'm pleased we have that larger mandate. With all the noise and all the disinformation and misinformation that has been floating around, the company has been damaged, unnecessarily so."
The transaction values DNO at US$1.64 billion (Dh6.02bn), or 9.50 kroner a share, and RAK's operating subsidiaries at $250 million. Criticism of the move prompted RAK to enter an agreement with a group of minority shareholders on Tuesday. The deal will create a company with operations in northern Iraq, Yemen, the UAE, Tunisia and Oman.
"DNO's ambition is to become a significant exploration and production company in the Middle East and North Africa region," Helge Eide, the chief executive, said at the meeting yesterday. "This merger creates a stronger platform for further growth. Growth will be done through transactions and acquisitions."
Berge Gerdt Larsen, a former chairman of the Norwegian company who was voted off the board in June, worked to prevent the merger, saying the deal undervalued DNO and blocked a possible higher bid from other interested parties, such as Tony Hayward's company, Vallares. Vallares bought Genel Energy International, also a regional producer, in September for $2.1bn.
"I'll give you a tip: Tony Hayward," Gerdt Larsen said at the meeting. "We're partners with Genel."
DNO rose 2.1 per cent to 6.70 kroner at the close in Oslo. The stock is down 26 per cent this year, valuing it at 6.4bn kroner (Dh4.16bn).
RAK, which will get about 43 per cent control of DNO through the deal, yesterday committed to reducing its stake to 30 per cent by the end of next year.
The agreement with the shareholder group also states that an independent committee including smaller investors will be set up to propose a member for the board. RAK would support such a candidate, Mr Mossavar-Rahmani said yesterday. RAK agreed to accept as many as 80 million treasury shares as partial settlement of the 153.4 million consideration shares it will receive, to reduce the dilution of shareholders' ownership as a result of the merger.
DNO yesterday said it had completed its open market partial tender offer for as many as 54.5 million common shares, which resulted in the company buying back 42.6 million shares at 7.50 kroner each. The company's stock of treasury shares after the transaction is 68 million shares.
The board's request for authorisation to increase DNO's share capital by as many as 100 million shares was not approved at the meeting. RAK as part of the deal with the minority shareholder group DNO Initiative agreed to postpone the capital increase until the details for a secondary listing in London next year had been established. The listing process would be accelerated, Mr Mossavar-Rahmani said.
DNO, the first foreign company to begin pumping oil in Iraq since the 1970s, is awaiting outstanding payments for its exports from the Kurdish region after receiving two payments this year. Iraq's central government agreed in February to resume exports from the semi-autonomous region and pay foreigners while it sought to resolve a dispute over oil contracts with the regional government. The Kurdish region accounted for 88 per cent of DNO's output last quarter.
DNO said in September that merging with RAK would add 7,500 barrels of oil equivalent a day (boepd) to its average working interest output of 45,000 boepd. RAK's contribution would rise to about 15,000 boepd within a year after the redevelopment of Saleh field off the emirate of Ras Al Khaimah, the companies said. The company's reserves would rise 15 per cent to 406.6 million boepd, according to DNO.
Mr Eide, the DNO chief, said in an interview that the company was already looking at "companies and projects" to acquire in the Middle East and North Africa, declining to specify where.
"Organic growth takes time and it's risky, and in the current global equities environment, there are tremendous opportunities to buy companies that are trading at 30 to 40 per cent of net asset value," Mr Mossavar-Rahmani said. "It's a lot cheaper now to buy oil on the London stock exchange or the New York stock exchange or Toronto by buying companies than it is to try to buy assets."
* Bloomberg News
UAE currency: the story behind the money in your pockets
Other workplace saving schemes
- The UAE government announced a retirement savings plan for private and free zone sector employees in 2023.
- Dubai’s savings retirement scheme for foreign employees working in the emirate’s government and public sector came into effect in 2022.
- National Bonds unveiled a Golden Pension Scheme in 2022 to help private-sector foreign employees with their financial planning.
- In April 2021, Hayah Insurance unveiled a workplace savings plan to help UAE employees save for their retirement.
- Lunate, an Abu Dhabi-based investment manager, has launched a fund that will allow UAE private companies to offer employees investment returns on end-of-service benefits.
The specs
Engine: Direct injection 4-cylinder 1.4-litre
Power: 150hp
Torque: 250Nm
Price: From Dh139,000
On sale: Now
MATCH INFO
Uefa Champions League semi-final:
First leg: Liverpool 5 Roma 2
Second leg: Wednesday, May 2, Stadio Olimpico, Rome
TV: BeIN Sports, 10.45pm (UAE)
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
Sweet%20Tooth
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Guide to intelligent investing
Investing success often hinges on discipline and perspective. As markets fluctuate, remember these guiding principles:
- Stay invested: Time in the market, not timing the market, is critical to long-term gains.
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- Strategic patience: Understand why you’re investing and allow time for your strategies to unfold.
Padmaavat
Director: Sanjay Leela Bhansali
Starring: Ranveer Singh, Deepika Padukone, Shahid Kapoor, Jim Sarbh
3.5/5
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COMPANY PROFILE
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded
The specs
Engine: 3-litre twin-turbo V6
Power: 400hp
Torque: 475Nm
Transmission: 9-speed automatic
Price: From Dh215,900
On sale: Now
COMPANY%20PROFILE
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Sui Dhaaga: Made in India
Director: Sharat Katariya
Starring: Varun Dhawan, Anushka Sharma, Raghubir Yadav
3.5/5
COMPANY PROFILE
Name: HyperSpace
Started: 2020
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
Based: Dubai, UAE
Sector: Entertainment
Number of staff: 210
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
DC%20League%20of%20Super-Pets
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The biog
Nickname: Mama Nadia to children, staff and parents
Education: Bachelors degree in English Literature with Social work from UAE University
As a child: Kept sweets on the window sill for workers, set aside money to pay for education of needy families
Holidays: Spends most of her days off at Senses often with her family who describe the centre as part of their life too
Three tips from La Perle's performers
1 The kind of water athletes drink is important. Gwilym Hooson, a 28-year-old British performer who is currently recovering from knee surgery, found that out when the company was still in Studio City, training for 12 hours a day. “The physio team was like: ‘Why is everyone getting cramps?’ And then they realised we had to add salt and sugar to the water,” he says.
2 A little chocolate is a good thing. “It’s emergency energy,” says Craig Paul Smith, La Perle’s head coach and former Cirque du Soleil performer, gesturing to an almost-empty open box of mini chocolate bars on his desk backstage.
3 Take chances, says Young, who has worked all over the world, including most recently at Dragone’s show in China. “Every time we go out of our comfort zone, we learn a lot about ourselves,” she says.
COMPANY PROFILE
Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding
COMPANY%20PROFILE%20
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Dubai Bling season three
Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed
Rating: 1/5
German intelligence warnings
- 2002: "Hezbollah supporters feared becoming a target of security services because of the effects of [9/11] ... discussions on Hezbollah policy moved from mosques into smaller circles in private homes." Supporters in Germany: 800
- 2013: "Financial and logistical support from Germany for Hezbollah in Lebanon supports the armed struggle against Israel ... Hezbollah supporters in Germany hold back from actions that would gain publicity." Supporters in Germany: 950
- 2023: "It must be reckoned with that Hezbollah will continue to plan terrorist actions outside the Middle East against Israel or Israeli interests." Supporters in Germany: 1,250
Source: Federal Office for the Protection of the Constitution
Normal People
Sally Rooney, Faber & Faber
The Sand Castle
Director: Matty Brown
Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea
Rating: 2.5/5
Paatal Lok season two
Directors: Avinash Arun, Prosit Roy
Stars: Jaideep Ahlawat, Ishwak Singh, Lc Sekhose, Merenla Imsong
Rating: 4.5/5
COMPANY%20PROFILE
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RESULT
Los Angeles Galaxy 2 Manchester United 5
Galaxy: Dos Santos (79', 88')
United: Rashford (2', 20'), Fellaini (26'), Mkhitaryan (67'), Martial (72')
Moon Music
Artist: Coldplay
Label: Parlophone/Atlantic
Number of tracks: 10
Rating: 3/5
If you go
Where to stay: Courtyard by Marriott Titusville Kennedy Space Centre has unparalleled views of the Indian River. Alligators can be spotted from hotel room balconies, as can several rocket launch sites. The hotel also boasts cool space-themed decor.
When to go: Florida is best experienced during the winter months, from November to May, before the humidity kicks in.
How to get there: Emirates currently flies from Dubai to Orlando five times a week.
THE BIG MATCH
Arsenal v Manchester City,
Sunday, Emirates Stadium, 6.30pm
The Bio
Name: Lynn Davison
Profession: History teacher at Al Yasmina Academy, Abu Dhabi
Children: She has one son, Casey, 28
Hometown: Pontefract, West Yorkshire in the UK
Favourite book: The Alchemist by Paulo Coelho
Favourite Author: CJ Sansom
Favourite holiday destination: Bali
Favourite food: A Sunday roast
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.