DNO International, the Norwegian independent with major assets in Kurdistan, announced today that based on recent news from Calvalley Petroleum, it has currently decided not to proceed with its unsolicited all-cash offer on 5 July to acquire Calvalley for CA$2.30 a share.
In a statement to the Oslo Stock Exchange, DNO says it is pulling its bid after subsequently discovering that a partner with Cavalley at the firm’s Malik Block 9 joint venture in Yemen was looking to sell its 25% stake.
Cavalley has an option to step in and buy all or part of its minority partner’s stake to add to its own interest, which DNO says Cavalley’s board is now considering.
“The opportunity by Calvalley to match the offer on Block 9 may help explain Calvalley’s previous reluctance to enter into any meaningful dialogue,” said DNO in a statement.
“DNO International looks forward to learning Calvalley’s response to the Notice before determining whether or how best to engage in a constructive dialogue towards any transaction.”
DNO said that up to and including the time at which it sent its 5 July offer, it “had not received any meaningful engagement from Calvalley’s board of directors or senior management to its approaches, including an offer letter dated 7 June 2012, and therefore felt compelled to bring instead its offer directly to the Calvalley shareholders.”
