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03.01.2019 kl 12:14 3691

3 January 2019

Faroe Petroleum plc (the "Company" or "Faroe")

DNO Offer fails to secure sufficient acceptances, moves to mandatory offer

The Board of Faroe (the "Board", "we") notes the announcement by DNO ASA ("DNO")
on 3 January 2019 that it has received acceptances of its unsolicited offer for
the entire issued and to be issued share capital of Faroe not already owned by
DNO at 152p per share in cash (the "Offer") of 48, 986, 566 Faroe shares,
representing approximately 13.1% of the existing issued share capital of Faroe.
The Board also notes that DNO has this morning purchased a further 372,890 Faroe
shares, taking DNO's total share of the existing issued share capital of Faroe
to 30%, and has moved its Offer to a mandatory cash offer.

The Board notes DNO's failure to secure sufficient acceptances for its Offer to
be declared unconditional by the first closing date of 2 January 2019 and
reiterates the Board's position that DNO's Offer price of 152p per share is
opportunistic and substantially undervalues Faroe. This is further reinforced by
the independent valuation report on Faroe's assets by Gaffney, Cline &
Associates ("GCA") that Faroe published yesterday, which implies a valuation for
Faroe in the range of 186p to 225p per share1.

The Board further notes that DNO has chosen to extend its Offer until 1.00pm
London time on 18 January 2019 at the same Offer price of 152p per share,
clearly suggesting that it has every intention to pursue its unsolicited Offer
despite its earlier statements raising the prospect that the Offer may lapse if
sufficient acceptances were not received by the first closing date of 2 January
2019. DNO's further market purchases also highlight this.

The Board is concerned at DNO's increasing attacks on Faroe's outstanding
exploration track record and its implied criticism of our technical team which
boasts one of the best exploration track records on the NCS. It is a
particularly puzzling criticism given that Faroe would provide DNO with a high
quality, full cycle and diversified North Sea asset base that stands in stark
contrast to DNO's existing business. In fact, DNO's statement that it is "not
going away" demonstrates the attractiveness of Faroe to DNO. As such, Faroe
would solve DNO's strategic challenges and shareholders should receive an
appropriate premium which is not currently reflected in DNO's Offer.

The Board reiterates the following observations in relation to the Offer
timetable, as established by the UK Takeover Code:

· DNO has until 27 January 2019 to improve or otherwise change its Offer,
should it wish to do so
· DNO has until 10 February 2019 to achieve sufficient acceptances for its
Offer to become unconditional
· If the Offer at any time becomes or is declared unconditional, DNO must keep
it open for acceptance for at least another 14 days

Shareholders are encouraged not to take any action in relation to the Offer and
not to sell their shares in the market. Shareholders who sell their shares in
the market or to DNO would not receive any increase in the Offer consideration
should DNO revise its Offer.

- Ends -

Se nyhetdetaljer og vedlegg (www.newsweb.no)

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