Dragon Oil

[Crazy88s]

I have 1000 shares in Dragon Oil in my H-L SIPP

 

A few weeks ago:

 

Oil and gas firm Dragon Oil confirmed it has agreed to be bought by majority shareholder Emirates National Oil Co for around £2.4bn.

Under the terms of the takeover Emirates National Oil Co, which has a 51% stake holding in Dragon Oil, has agreed to pay 455p a share in cash.

Commenting on the acquisition, Dubai based ENOC said the deal "significantly improves operational flexibility and supports ENOC's strategy of growing the current business in the Middle East and in Turkmenistan."

Dragon Oil said it "considers the terms of the acquisition to be fair and reasonable."

 

on the 11th of December:

 

Shareholders in Dragon Oil have rejected the bid from the Emirates National Oil Corporation.

Nearly 73m shares were voted against the resolution that would have allowed the scheme of arrangement to go ahead, while 69.9m were voted in favour. The vote required the backing of 75% of the shares voted to go ahead.

Emirates National Oil Corporation was not allowed to vote. It will continue to own a 51.5% of Dragon.

The 455p a share bid valued Dragon at £2.4bn.

Shares in Dragon fell 13.25p to 379.75p a share, which values the oil and gas producer at £1.96bn.

 

I read somewhere that ENOC would not be offering a higher bid ad the bid of 455p per share was final. Do you think that ENOC will now dump the stock or make a higher bid?

 

[littledavesab]

see also

 

http://www.greenenergyinvestors.com/index....mp;#entry147970

 

I am in Dragon Oil - but Investors Chronicle made a comment that Emirates National Oil is majority owner and could if it wants re-domecile DGO offshore somewhere which will make its shares painful to trade and from where it could try again using a different stock exchange rule where its majority shares could be voted

 

a prospect that makes me a little nervous + same thought repeated here

 

http://ftalphaville.ft.com/blog/2009/12/11...agon-oil-offer/

 

The question now is what action the stung majority-owner will take. A particularly aggressive option would be to re-domicile Dragon Oil’s listing to somewhere beyond the reach of Ireland’s Takeover Panel, although that would require another shareholder vote.