Dragon Oil shares are on fire after Emirates National Oil Company’s bid successComments Off on Dragon Oil shares are on fire after Emirates National Oil Company’s bid success
Majority shareholder Emirates National Oil Company is set to pay 750p a share, up from 735p, to buy out investors controlling the other 46% of the company.
The news boosted Dragon’s shares by 9% to 728p.
The deal could see Dragon delisted from the London and Irish stock exchanges.
It is also likely to result in a change in strategy for the Dubai-headquartered business.
Saif Al Falasi, Enoc chief executive, said: “As a long-term and supportive shareholder, we appreciate Dragon Oil’s achievements to date.
“We believe that it has now achieved as much as is possible through its existing upstream strategy.
“Moreover, with production close to plateau at its sole producing asset and with an uncertain market backdrop, this offer provides Dragon Oil’s minority shareholders certainty and a clear opportunity to realise significant cash today.”