No increase on Dragon Oil bid says ENOC chief

Saeed Khoory says energy company will not be upping its initial offer

ENOC chief executive Saeed Khoory.
ENOC chief executive Saeed Khoory.

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The chief executive of the Emirates National Oil Co (ENOC) has said that the company will not be increasing its bid to buy the exploration and production company Dragon Oil.

Speaking at the sidelines of a conference Saeed Khoory told Reuters that the initial figure of GBP4.55 (around US$7.55) per share would not be increased by Dubai’s state-owned energy company.

"Despite what analysts say it is not underpriced and we will not increase our price and this is a final decision," Khoory is reported by Reuters as saying.

ENOC’s proposed takeover has resulted in a furious reaction from shareholders with both small and large stakes in the Dublin-based company.

The company’s offer price has been questioned by independent analysts.

“We estimate that ENOC’s bid for Dragon Oil at GBP4.55 generates an overly generous 25% IRR for ENOC, excluding the additional benefit of accessing nearly a billion dollars of cash almost immediately for a cash outlay of $1.9 billion,” analyst Peter Hutton from NCB stockbrokers said.

Noster Capital, a UK-based hedge fund with a stake in Dragon Oil also released a statement saying that it planned to reject the offer.
 

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