UPDATE: Genel "considering its position" as DNO trumps Capricorn offer

Genel Energy PLC on Tuesday urged Capricorn Energy PLC shareholders to "take no action" after DNO ASA made a higher takeover bid.

Earlier, Edinburgh-based oil and gas company Capricorn said DNO's DNO Bidco AS will pay USD4.224 per share in cash, plus a special dividend of USD0.99, for total consideration of USD5.214 per share.

The Norwegian oil and gas firm's offer values Capricorn at around USD396 million and represents a 45% premium to Capricorn's closing share price of 266 pence on March 10, before the offer period began.

It also represents a 10% premium to the value agreed with Genel Energy PLC in July. Genel is an exploration and oil production company with production assets in the Kurdistan Region of Iraq, and exploration assets in Oman and Somaliland.

Capricorn shares closed up 10% in London on Tuesday at 378.00p each. Genel shares were down 7.1% at 65.20p each.

In July, Genel agreed to acquire Capricorn for USD4.74 per share, comprising USD3.75 in cash and a special dividend of USD0.99. That offer remains subject to conditions, including Egyptian approvals. However, Capricorn said its directors do not currently intend to seek court sanction of the Genel scheme or to declare the special dividend connected with that offer.

Genel, on Tuesday afternoon, acknowledged the news of DNO's higher offer.

"Following the DNO Offer, Genel is considering its position and a further announcement will be made when appropriate," the company said. "Capricorn shareholders are strongly advised to take no action in response to the DNO Offer in the meantime."

DNO had approached Genel in July with a possible takeover proposal, which the latter rejected.

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