Norway’s DNO has announced an increased and final cash offer to £641.7m ($816m) for the acquisition of UK-based Faroe Petroleum, raising its offer to 160p per Faroe share from 152p.

Last November, Faroe rejected DNO’s £610m ($778m) hostile bid, saying it as inadequate and opportunistic.

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Reuters quoted DNO executive chairman Bijan Mossavar-Rahmani as saying in a statement that while the company ‘does not overpay for assets’, it was in the interest of most parties to raise its offer.

The final offer is set to close on 23 January, according to DNO, which has been building up a stake in Faroe since April.

DNO further added that it needs 50% of Faroe’s shareholders to support its takeover offer.

“For minority shareholders, this may be the nail in the coffin. They are unlikely to want to stick around with DNO holding a controlling stake in the business.”

According to Refinitiv Eikon data, Cavendish Asset Management owns 1.4% of Faroe.

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Refinitiv Eikon’s Paul Mumford said: “For minority shareholders, this may be the nail in the coffin. They are unlikely to want to stick around with DNO holding a controlling stake in the business.”

If the transaction closes, DNO expects that it may be required to combine its interest in its Norwegian operating subsidiary with the Norwegian subsidiary of Faroe.

DNO’s final offer is not expected to affect its existing business. The company did not hold any discussions with Faroe’s management with regard to ongoing incentivisation arrangements following completion of the offer.

Independent oil and gas company Faroe is focused on exploration, appraisal and production activities in Norway and the UK.

As at 31 December 2017, the company has stated 2P reserves of 97.7 MMboe and 2C resources of 78.6 MMboe; 2017 daily production averaged 14,349boed.