DNO Raises Faroe Stake

Norwegian independent DNO said December 20 it has increased its stake in Faroe Petroleum to 29.9%.

It announced shortly before 4pm Oslo time that it had acquired 6,246,152 Faroe shares at a weighted average price of £1.5195/share, taking its stake to 29.9%. Its previous shareholding of 28.7% was reached in April 2018; four months later it attempted to gain two seats on Faroe's board.

On December 12 DNO made a formal all-cash offer for the outstanding shares of Faroe Petroleum of £1.52 ($1.905)/share, for which acceptances must be received by 1pm GMT January 2. Faroe branded the unwelcome offer "cheap" and "opportunistic" and urged its shareholders to take no action. 

Predator and target are Oslo-listed. DNO's largest owner however is UAE-owned RAK Petroleum. A 29.9% stake is the limit, above which a formal takeover must be made or abandoned.