Emirates National Oil Company (Enoc) officially launched its offer to buy out minority shareholders in Dragon Oil at 750 pence a share yesterday.
The move, which confirms an offer price floated last month, starts the clock under Irish Stock Exchange rules. This means the minority shareholders have until July 30 to decide whether or not to accept.
Enoc already owns 53 per cent of Dragon Oil, whose main asset is an oilfield in Turkmenistan that reached a production rate last month of about 100,000 barrels per day.
Six years ago, Enoc failed in its first attempt to buy out minority shareholders.
Enoc now needs to convince holders of just over 23 per cent of Dragon Oil shares — or just over half the minority shareholders — to sell to delist the company from the Irish and London stock exchanges.
Failure to cross that threshold would mean it stays public and subject to Irish Stock Exchange rules.
Dragon Oil shares were quoted in London late in the UAE day yesterday at an all-time high of 733.50 pence.
The shares hit a low point this year was in mid-January at 469 pence.
The official offer values the entire company at about £3.7 billion (Dh21.26bn) and was up from an unofficial offer of 735 pence in May and an initial offer of 650 pence in early March, when the shares were trading at 509 pence.
The reaction from minority shareholders who have expressed an opinion has been mixed.
Henry Dixon, a fund manager at GLG, part of Man Group, which owns about 1 million Dragon Oil shares, or about 0.21 per cent of the company, came out in support yesterday.
“In our view, the shares have transitioned to fair value and we therefore think 750 pence represents a compelling price for all minority shareholders,” Mr Dixon said. “We support the recommendation communicated by the independent committee and the board of Dragon Oil, and their assessment that the offer is full and fair.”
The independent committee was set up this year by Dragon Oil and headed by an independent outside oil executive, Thor Haugnaess, to review Enoc’s offer.
Dragon Oil’s largest minority shareholder, the Edinburgh-based fund management group Baillie Gifford has opposed the offer, which it says “materially undervalues” the company. Baillie Gifford owns about 35 million shares — a little more than 7 per cent of Dragon Oil.
The emerging markets analyst Richard Sneller said Dragon Oil has the potential to double production over the next 10 years, which would make it one of the fastest-growing listed oil companies in the world.
Enoc disputes that assessment of the Cheleken field in Turkmenistan.
Other large minority shareholders, which include Dublin-based Setanta Asset Management and Franklin Resources, have so far declined to comment on the offer.
amcauley@thenational.ae
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NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
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In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
Power: 420hp
Torque: 623Nm
Transmission: 10-speed automatic
Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)
On sale: Now
Ms Yang's top tips for parents new to the UAE
- Join parent networks
- Look beyond school fees
- Keep an open mind
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
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How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
RESULTS
5pm: Handicap (TB) Dh100,000, 2,400m
Winner: Recordman, Richard Mullen (jockey), Satish Seemar (trainer)
5.30pm: Wathba Stallions Cup Handicap (PA) Dh 70,000, 2,200m
Winner: AF Taraha, Tadhg O’Shea, Ernst Oertel
6pm: Abu Dhabi Fillies Classic Prestige (PA) Dh110,000, 1,400m
Winner: Dhafra, Fabrice Veron, Eric Lemartinel
6.30pm: Abu Dhabi Colts Classic Prestige (PA) Dh110,000, 1,400m
Winner: Maqam, Fabrice Veron, Eric Lemartinel
7pm: Handicap (PA) Dh85,000, 1,600m
Winner: AF Momtaz, Fernando Jara, Musabah Al Muhairi
7.30pm: Maiden (PA) Dh80,000, 1,600m
Winner: Optimizm, Patrick Cosgrave, Abdallah Al Hammadi
