Emirates National Oil Co’s (ENOC) bid for Dragon Oil appears to have been scuppered, after the largest investor in the Dublin-based outfit said the bid undervalued the company.
Baillie Gifford said the takeover offer “materially undervalued” the company.
ENOC, which already owns 54% of Dragon Oil, increased its offer to buy out the minority shareholders last week to 750p per share, valuing the stock it does not already own at $2.7bn.
Fund manager Baillie Gifford, which owns 7.2% of the company, said the offer did not fully value the future growth potential of the firm.
“We encourage shareholders to consider the case presented here, and reflect on the growth infrastructure that is presently being assembled before making their own determination whether or not to accept the current Offer,” Reuters quoted Richard Sneller, head of emerging markets at the fund manager, as saying.
