Dragon Oil shareholder Baillie Gifford to dismiss ENOC’s 750p per share offer as too low – market report
Dragon Oil shareholder Baillie Gifford will today, 18 June dismiss a revised offer of 750p per share for the UK-listed oil and gas group from Emirates National Oil Company (ENOC) as too low, The Times reported. Baillie Gifford will argue that ENOC’s GBP 3.7bn (EUR 5.16bn) bid “materially undervalues” Dragon Oil, but did not cite a source for the quote, the newspaper’s market report section noted.
Baillie Gifford is Dragon Oil’s biggest independent shareholder with a 7.2% stake, the item said. It is expected that the asset manager will lobby for support from other shareholders to push for a higher offer from ENOC, according to the report.
Dragon Oil on Monday, 15 June announced that its board had agreed terms with ENOC on a recommended cash offer of 750p per share.
ENOC holds more than 50% of Dragon Oil’s shares, but its takeover bid needs majority support, the article said.
Baillie Gifford thinks ENOC’s offer does not fully take into account the prospects of Dragon Oil’s South Caspian oilfield, the item continued. The asset manager estimates that the South Caspian field could increase production by a minimum of 5% to 10% per year over the next ten years, giving it one of the highest growth rates of its listed peers, according to the newspaper.
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Source The Times