Dana agrees to buy Norway's Ener for 24 mln pounds

OSLO, June 12 Tue Jun 12, 2007 4:39pm BST

Related Topics

Quotes

   

OSLO, June 12 (Reuters) - British independent oil and gas company Dana Petroleum DNX.L has agreed to buy Norway's Ener Petroleum ASA ENER.NFF for about 24 million pounds ($47.36 million), the companies said on Tuesday.

Dana Petroleum will carry out the acquisition partly by subscribing for about 1.52 million new shares in Ener Petroleum and partly by buying shares from existing shareholders, Ener and Dana said in separate statements.

"The subscription represents approximately 53 percent of the fully diluted share capital of Ener following the issuance of new shares to Dana," Dana Petroleum said.

"The effective purchase price Dana will have paid to acquire 100 percent of Ener will be approximately 24 million pounds," Dana Petroleum said.

Dana Petroleum will subscribe to 243 million Norwegian crowns ($40.01 million) worth of Ener shares at 160 crowns per share in the company's directed issue, Ener Petroleum said in a statement.

In addition, Dana Petroleum has entered into conditional agreements to buy Ener shares for 220 crowns per share from existing Ener shareholders, Ener Petroleum said.

The over-the-counter stock was last traded at 155 crowns on Monday.

"Including the 243 million crowns issue, Dana's stake will be 93.7 percent on a fully diluted basis," Ener Petroleum said, adding that those deals and the share issue depended on Dana obtaining the necessary approvals from Norwegian authorities.

"The board of Ener takes a positive view of the agreement as it represents an opportunity for the company to participate in a sensible consolidation on the Norwegian continental shelf, and moreover gives a financial and strategic platform for further growth," Ener Petroleum said.

Dana Petroleum said the proceeds from the directed share issue would be used to expand Ener's exploration and production business on the Norwegian shelf.

Dana Petroleum had said in December 2006 that it would offer 495 million crowns for all of Ener Petroleum, but in January it pulled the plug on that plan.

Ener Petroleum, whose main asset is a 45 percent interest in ExxonMobil's (XOM.N) Jotun oilfield off Norway, was advised by Fondsfinans and Dana by ABN Amro, Ener said.

Ener said it would withdraw its application for a listing of its shares on Oslo Axess, a marketplace for small-cap stocks, due to the takeover.

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.