LONDON (Alliance News) - DNO ASA on Thursday said it has bought a further 20% of Faroe Petroleum, meaning it is approaching the threshold for de-listing the stock from AIM.
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.
On Tuesday, DNO had upped its 152 pence offer to 160p, valuing its final offer at GBP641.7 million. Faroe shares were down 0.5% Thursday at that price of 160p.
Earlier on Wednesday, 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%.
Now DNO has bought another 20%, so the figure for holdings and acceptances stands at just under 73%. If it reaches 75%, DNO will be able to remove Faroe from the London Stock Exchange's AIM market.
DNO Executive Chairman 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."
Late Wednesday, Faroe shareholder Cavendish Asset Management Ltd sold its stake after DNO's "unacceptable" offer. Its holding was not disclosed.