Emirates National Oil Company (Enoc) may extend its buyout offer for Dragon Oil, which is set to expire on Thursday, after having failed to garner sufficient support from minority shareholders, sources say.
Enoc more than six weeks ago made its offer of 750 pence a share for about 46 per cent of Dragon Oil it does not already own. The offer expires on Thursday at 3pm (Ireland time) in Dublin, where the shares have their primary listing.
Under Irish Stock Exchange takeover rules, a majority of Dragon Oil’s minority shareholders – or slightly more than 23 per cent of voting shares – must vote to accept Enoc’s offer to be able to proceed with plans to delist Dragon Oil and privatise it.
“At this point, it looks like the offer will be extended,” said a person familiar with the deal.
If Enoc extends its takeover offer, it then has 39 days to revise the offer and a total of 60 days until the final offer expires, subject to Irish regulators’ approval.
Several of Dragon Oil’s largest minority shareholders – representing a total equity of about 16 per cent – have said the 750 pence offer was inadequate.
The Edinburgh-based fund manager Baillie Gifford was first to voice its concerns soon after the offer was made in the middle of last month. It had previously led the effort in 2009 that blocked an earlier Enoc offer to acquire Dragon Oil.
Baillie Gifford was joined by Setanta Asset Management in publicly opposing the offer, and later by Elliott Advisors, part of the New York-based hedge fund billionaire Paul Singer’s group, which built up a stake of more than 5 per cent this month.
The investors argue that Enoc is deliberately understating the potential of Dragon Oil’s main asset – the Cheleken oil and gasfield off the shores of Turkmenistan – as well as other prospects.
Baillie Gifford has suggested that Enoc add a contingency payment to reflect Cheleken’s upside potential.
“Regarding the prospect of a sweetener, I think that depends on the level of acceptances received,” said Gerry Hennigan, an analyst who follows Dragon Oil for Goodbody Stockbrokers in Dublin.
“If it falls short, probably it will be in everyone’s interests to tease out [a higher offer],” said Mr Hennigan, who recently valued Dragon Oil shares at 807 pence a share.
Dragon Oil shares were trading at 720.50 pence on Wednesday, down 1.5 pence.
amcauley@thenational.ae
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One of Basquiat’s paintings, the vibrant Cabra (1981–82), now hangs in Louvre Abu Dhabi temporarily, on loan from the Guggenheim Abu Dhabi.
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THE BIO
Ms Davison came to Dubai from Kerala after her marriage in 1996 when she was 21-years-old
Since 2001, Ms Davison has worked at many affordable schools such as Our Own English High School in Sharjah, and The Apple International School and Amled School in Dubai
Favourite Book: The Alchemist
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Dialysis is a way of cleaning your blood when your kidneys fail and can no longer do the job.
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There are two kinds of dialysis — haemodialysis and peritoneal.
In haemodialysis, blood is pumped out of your body to an artificial kidney machine that filter your blood and returns it to your body by tubes.
In peritoneal dialysis, the inside lining of your own belly acts as a natural filter. Wastes are taken out by means of a cleansing fluid which is washed in and out of your belly in cycles.
It isn’t an option for everyone but if eligible, can be done at home by the patient or caregiver. This, as opposed to home haemodialysis, is covered by insurance in the UAE.
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Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
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Indoor cricket in a nutshell
Indoor cricket in a nutshell
Indoor Cricket World Cup - Sept 16-20, Insportz, Dubai
16 Indoor cricket matches are 16 overs per side
8 There are eight players per team
9 There have been nine Indoor Cricket World Cups for men. Australia have won every one.
5 Five runs are deducted from the score when a wickets falls
4 Batsmen bat in pairs, facing four overs per partnership
Scoring In indoor cricket, runs are scored by way of both physical and bonus runs. Physical runs are scored by both batsmen completing a run from one crease to the other. Bonus runs are scored when the ball hits a net in different zones, but only when at least one physical run is score.
Zones
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C Side nets between halfway and the bowlers end: 2 runs
D Back net: 4 runs on the bounce, 6 runs on the full
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Tearful appearance
Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday.
Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow.
She appeared with Keir Starmer on Thursday and the pair embraced, but he had failed to give her his backing as she cried a day earlier.
A spokesman said her upset demeanour was due to a personal matter.
