Danas Gas has emerged as a prominent acquisition target for Valleres, a $2.2 billion private equity fund started by Nathaniel Rothschild and headed up by ex-BP CEO Tony Hayward.Â
Vallares has been targeting many companies since raising equity earlier this year, but has only disclosed a few targets to investors, another being Turkish E&P firm Genel Energji. The fund has another year and a half before it must commit to acquisitions.
According to a report in today’s Financial Times, executives from Dana Gas and Valleres have met on several occasions, though the FT reports a source cautioning that a deal may not go ahead.
The news follows Dana Gas’s announcement to the Abu Dhabi Securities Exchange earlier this month that it is looking to list some of its assets on the London Stock Exchange and refinance a $1 billion Sukuk (a Sharia-compliant bond). The company has a current market capitalisation of around $1 billion.
The move is a clear expression that Dana Gas sees its portfolio as undervalued, with only modest improvements in its stock price recently despite announcing sizeable new discoveries.Â
