DNO starts clock on £610m bid for Faroe

Norwegian oil and gas company DNO on Wednesday started the clock on its £610 million hostile takeover bid for Aberdeen-based Faroe Petroleum.

DNO, which already owns about 28% of Faroe Petroleum, has now published an offer document.

DNO is giving Faroe shareholders three weeks to accept its offer of 152p per share.

“This full and fair offer provides Faroe shareholders a rare opportunity to exit their relatively illiquid AIM-listed positions at an attractive price in a volatile and uncertain market for oil and equities,” Bijan Mossavar-Rahmani, executive chairman of DNO, said in a statement.

Acceptances must be received by 1300 GMT on January 2, the first closing date of the offer, unless the acceptance period is extended, DNO said.

If the offer lapses, DNO cannot make a new offer for another 12 months and it said “there can be no assurances” as to its long-term ambitions.

DNO criticised Faroe’s recent asset swap with Equinor, saying Faroe had “jettisoned a crown jewel asset for mature production.”