DNO withdraws from Capricorn Energy bidding war

Norwegian energy company DNO has confirmed it will not submit a counter offer for Capricorn Energy. The decision follows a recent move by rival Genel Energy, which increased its bid price to 436 million dollars last week. DNO stated that it wishes its competitor every bit of luck in the process.

In a statement filed with the London Stock Exchange, the Oslo listed firm explained that it maintains a highly disciplined approach to mergers and acquisitions. It confirmed that the financial terms of its revised all cash offer, valued at 5.214 dollars per Capricorn share, are final and will not be increased. DNO also indicated that it will not implement its offer through a contractual mechanism. The company noted that it continues to rigorously pursue buyout options across the North Sea and the Kurdistan Region of Iraq.

DNO highlighted its positive interactions with Egyptian authorities, stating that it continues to evaluate the country for investment opportunities. The Norwegian firm holds a 75 per cent operated interest in the Tawke licence in the Kurdistan Region of Iraq, with Genel holding the remaining 25 per cent. Genel’s increased bid was 10 per cent higher than DNO’s prior offer. DNO is active on the Norwegian Continental Shelf and holds licences in the UK Continental Shelf. Capricorn, formerly known as Cairn Energy, previously operated in the North Sea before shifting its focus to Egypt. The Edinburgh based company had previously reached the FTSE 100 under its former management.