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BRIEF-DNO offers to buy Gulf Keystone for $300 mln in cash and shares
July 29, 2016 / 6:30 AM / a year ago

BRIEF-DNO offers to buy Gulf Keystone for $300 mln in cash and shares

July 29 (Reuters) -

* Norwegian oil and gas operator DNO ASA says unveiled a proposal to acquire for USD 300 million all of enlarged share capital in Gulf Keystone Petroleum Ltd following latter’s contemplated financial restructuring announced earlier this month

* The terms of the DNO proposal, which would comprise cash and shares, reflect a 20 percent premium to the share price of USD 0.0109 at which, on 14 July 2016, Gulf Keystone issued shares representing 5.6 percent of its share capital, and also reflect a 20 percent premium to the price at which Gulf Keystone intends to issue further shares in its restructuring

* In addition, for the Gulf Keystone guaranteed noteholders the DNO terms reflect 111 percent of par value compared to 99 percent under the contemplated restructuring, and for the convertible bondholders the DNO terms reflect 18 percent of par value compared to 15 percent under the contemplated restructuring

* By offering USD 120 million in cash (approximately 40 percent of the consideration), DNO would provide an early exit for those noteholders and bondholders who may be unable or unwilling to hold equity for an extended period

* The additional offer of 170 million DNO shares (approximately 13.6 percent of the post transaction DNO share capital) would provide Gulf Keystone investors with continued exposure to the Shaikan field in addition to DNO’s wider portfolio of assets

* Gulf Keystone holds a 58 percent stake in and operates the Shaikan oil field at a current level of around 40,000 bopd of 17 degree API crude

* Production from Shaikan is transported daily by road tanker to DNO’s unloading and storage hub at Fish Khabur for onward pipeline transport to export market

* DNO has retained Pareto Securities AS as financial adviser and Freshfields Bruckhaus Deringer LLP, Advokatfirmaet Thommessen AS and Conyers Dill & Pearman Limited as legal counsel in connection with the transaction Source text for Eikon: Further company coverage: (Reporting By Ole Petter Skonnord)

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