Thursday, April 05, 2018
Norwegian oil firm DNO increases its stake in Britain’s Faroe Petroleum, boosting its holding to 27.7%.
OSLO, April 5 (Reuters) – Norwegian oil firm DNO has again increased its stake in Britain’s Faroe Petroleum, it said on Thursday, boosting its holding to 27.7 percent the day after it bought its first shares.
DNO on Wednesday purchased 25.4 percent of Faroe, adding it would become a long-term strategic owner while insisting it did not plan a full takeover.
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.
DNO returned to the North Sea last year after years of expansion in the Middle East, with the aim of growing via acquisitions and other investments.
Faroe Petroleum’s shares rose 3.2 percent in early trade to 1.216 pounds, just shy of the 1.25 pounds paid by DNO, while the Norwegian company’s shares rose by 1.6 percent.
DNO’s transactions supported the view that Faroe’s shares are undervalued, brokers DNB Markets said in a note to clients, reiterating a Buy recommendation for the British firm and a share price target of 1.45 pounds.
(Reporting by Terje Solsvik, editing by Gwladys Fouche)
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