April 4, 2018 / 5:53 PM / 10 months ago

Norway's DNO seeks to raise Faroe Petroleum stake to 25 pct

OSLO, April 4 (Reuters) - Norwegian oil firm DNO, which early on Wednesday bought a 15.4 percent stake in Faroe Petroleum, said after market close that it aims to further raise its holdings in the British company to around 25 percent.

DNO, which bought the initial stake from Israel’s Delek Group, will offer to buy up to 10 percent of Faroe’s shares from other owners by Thursday morning, although it does not plan a full takeover, it added.

Britain’s takeover code dictates that a firm publishing a “no intention to bid statement” must refrain for at least six months from crossing the 30 percent ownership threshold, at which an obligation to make a mandatory offer is triggered.

The Norwegian firm last year returned to the North Sea after years of expansion in the Middle East, with the aim of growing via acquisitions and other investment.

“DNO now has decided to build a long term strategic shareholding in Faroe Petroleum and to support Faroe Petroleum management’s growth focused North Sea strategy,” it said.

Faroe earlier in the day announced it had made significant discoveries in its Hades and Iris exploration prospects offshore Norway.

A source close to Faroe said the company expected DNO to seek to appoint at least one new member to the Faroe board. The Norwegian firm was not immediately available for comment.

Faroe’s shares closed 12.2 percent higher on Wednesday, having hit a four-year high. (Reporting by Terje Solsvik in Oslo and Shadia Nasralla and Ron Bousso in London Editing by Alexandra Hudson)

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