Faroe Petroleum has announced that it will cancel trading on the Alternative Investment Market (AIM) after accepting a final offer from Norwegian oil and gas operator DNO.
DNO announced that its final offer, first issued on 8 January, became ‘unconditional in all respects’ on Monday, and by Tuesday had ‘received valid acceptances’ of the offer through approximately 14% of Faroe’s shares. The full final offer is for 52.4% of the UK-based petroleum firm’s shares for an aggregate total of 76.64% of Faroe’s shares.
Faroe’s board said in a press release: “Whilst the board does not believe the final offer represents fair value, the board recognises that, as set out above, the offer will be declared wholly unconditional upon settlement of the further share purchases made by DNO and DNO will, therefore, acquire statutory control of Faroe.”
Faroe confirmed in a statement on Wednesday that as DNO ASA’s acquisitions represent 75% of Faroe’s voting rights, it would be cancelling trading of Faroe shares on AIM, with the cancellation expected to take effect on 14 February.
Following this cancellation, DNO announced that it plans to re-register Faroe as a private limited company. As there will be no ready market for Faroe’s shares following this cancellation, this re-registration will ‘significantly reduce the liquidity and marketability of any Faroe shares not assented to the final offer’.
Faroe executive directors Graham Stewart, Jonathan Cooper and Helge Hammer gave their notice of resignation in a statement on Friday, following the announcement of DNO’s takeover.
DNO first made the takeover bid for Faroe’s shares in November 2018.