Emirates National Oil Company (ENOC) is set to take over Dragon Oil in a deal that is worth around $3.7bn.
ENOC, which already owns almost 54% of Dragon Oil, raised its offer to buy the business, from 735p a share to 750p a share.
Shares in Dragon Oil, which specialises in explorations and production in Turkmenistan, rose by 9% to 729p after the agreement was announced.
“Following our announcement on 21st May, outlining a possible cash offer for Dragon Oil, we met with a number of shareholders in order to give them the opportunity to provide feedback,” commented Saif Al Falasi, CEO of ENOC.
“As a direct result of these discussions, we decided to further improve our offer to 750 pence per share, which the Independent Committee at Dragon Oil has recommended.
“As a long term and supportive shareholder, we appreciate Dragon Oil’s achievements to date. We believe that Dragon Oil 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.
“ENOC’s Board and I have great respect for the Board and management of Dragon Oil and we look forward to working with them and the Independent Committee on successfully completing this recommended Offer.”
