Faroe Petroleum Says DNO Share Purchase From Delek Undervalues Company (ALLISS)

LONDON (Alliance News) - Faroe Petroleum PLC said Wednesday it has had "no discussions" with either DNO ASA or Delek Group Ltd over transactions in Faroe's shares.

On Wednesday morning, DNO said it had agreed to buy a 15% stake in Faroe from Delek. The deal covers 56.4 million Faroe shares, with the price being 125.00 pence per share, giving a total of GBP70.4 million.

Norwegian oil and gas firm DNO then earlier Wednesday afternoon invited Faroe shareholders to tender up to 10% of the latter's shares, whilst also saying it will not make an offer for the company.

DNO has engaged Pareto Securities AS to run the reverse bookbuild to acquire up to a further 10% of Faroe, with the price to be determined at a later stage, and the bookbuild will close by 0700 BST Thursday.

Faroe said it considers the price at which DNO purchased the shares from Delek to "substantially" undervalue the firm and its prospects.

Faroe shares closed up 12% on Wednesday at 117.80p.