Tuesday, Jul 05, 2011
Gulf News
Dubai RAK Petroleum and Norway’s DNO International have signed heads of agreements to merge RAK Petroleum’s Middle East and North Africa (Mena) operating subsidiaries into DNO in exchange for DNO shares to be issued to RAK Petroleum.
The consideration shares will be issued at a minimum share price of 8.25 Norwegian crowns and a maximum share price of 10.00 crowns against a value of the RAK Petroleum Mena assets between $250 and $300 million.
DNO is considering listing the merged company on the London Stock Exchange in addition to the Oslo listing.
A listing in London is expected to contribute to extended coverage of the company’s shares, attract interest from a broader range of MENA focused investors and provide a solid platform for follow on merger and acquisition activity.
It is expected that, on merger closing, RAK Petroleum will hold a total ownership interest in DNO of approximately 40 per cent. RAK Petroleum currently holds a 30 per cent stake in DNO. The number of shares to be issued by DNO to RAK Petroleum in consideration for the RAK MENA subsidiaries will be set by the parties based on relative valuations of DNO and the RAK MENA business.
“There is a compelling logic in combining the DNO and RAK Petroleum operating assets to build a first rank independent MENA upstream operator,” said Bijan Mossavar-Rahmani, chairman and CEO of RAK Petroleum.
Staff Report
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