Bid for Faroe crosses 50% level

Norway’s DNO has locked in the takeover process for Faroe Petroleum as its offer for the firm has become unconditional.

Last week, DNO said it had crossed the necessary 50% of shares threshold but believed it still needed to reach 57.5% to be certain of taking control.

DNO has now confirmed that its offer for Aberdeenheadquartered Faroe became wholly unconditional on Friday, as it now controls 64% of share capital.

DNO has previously said it intends to de-list Faroe from the London stock exchange if it takes control of 75% of the firm.

The company issued a final offer for Faroe last week at £1.60 per share, valuing it at £641.7 million.

Although argued this directors does not

“The company issued a final offer for Faroe last week”

represent “fair value”, they told shareholders they will accept the offer.

On Friday, chief executive Graham Stewart was issued a three-month termination notice as the company seeks new directors.

He is expected to pocket £12.5m from his 7.8m shares in the company.

DNO intends to retain Faroe’s base in Aberdeen, along with its other premises.

In April, DNO announced its interest in Faroe by snapping up almost 30% of shares.

It then made an initial cash offer in November to acquire the company at £1.52 per share, which directors rejected due to it “undervaluing” the company.

Faroe Petroleum was awarded its first licenses in the UK in 2004, and in 2006 entered Norway, where most of its activities are now based.