UPDATE: Faroe Petroleum Directors To Resign Following DNO Buy (ALLISS)

LONDON (Alliance News) - Norway's DNO ASA said Friday it has acquired a further 3.7% of Faroe ...

Alliance News 11 January, 2019 | 4:08PM
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LONDON (Alliance News) - Norway's DNO ASA said Friday it has acquired a further 3.7% of Faroe Petroleum PLC at 160 pence per share.

Taking into account the 13.7 million shares purchased Friday, DNO now owns and has acceptances for 76% of Faroe, representing 285.2 million shares.

DNO expects to declare the offer for the rest of the shares in Faroe it currently does not own unconditional at 160p per share. Shares in Faroe were flat Friday afternoon at 160p.

Now DNO owns more than 75% of Faroe, it plans to remove Faroe from the London Stock Exchange's AIM market.

On Thursday, DNO bought a further 20% of Faroe, approaching the threshold for de-listing the stock from AIM.

After acquiring the 20%, DNO Executive Chair Bijan Mossavar-Rahmani said: "The majority of Faroe's shareholders have now spoken and the Faroe board has disclosed its members, too, will accept DNO's offer in respect of their own holdings.

"We also note, and appreciate, the intent of Faroe's board to work with DNO to ensure an orderly transition of control of the company. That is indeed in the interest of all stakeholders."

On Wednesday, Faroe grudgingly accepted the Norwegian oil company's latest offer, despite not believing it a fair amount, given the offer was set to become unconditional anyway.

Later on Friday, Chief Executive Graham Stewart, Chief Financial Officer Jonathan Cooper and Chief Operating Officer Helge Hammer have given three months notice of termination from their roles in the company.

All three executives will remain in Faroe until replacement executive directors are appointed to facilitate an orderly transition.

Earlier the same day, DNO had announced a further 8.7% stake in Faroe had been bought, taking its holding to 39.3%. Given 13% of shareholders had accepted its old offer, at the time DNO's holding combined with acceptances stood at 52%.

On Tuesday, DNO had upped its 152 pence offer to 160p, valuing its final offer at GBP641.7 million.

Late Wednesday, Faroe shareholder Cavendish Asset Management Ltd sold its stake after DNO's "unacceptable" offer. Its holding was not disclosed.

By Paul McGowan; paulmcgowan@alliancenews.com; Updated by Dayo Laniyan; dayolaniyan@alliancenews.com

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