Dragon Oil: Cash-Rich Company With A Minimum 30% Upside Potential
Street Smart Investor
Street Smart Investor
Dragon Oil: Enter The Dragon
Aug. 3, 2015, 8:21 AM
- Emirates National Oil Co. has raised its takeover bid for Dragon Oil (OTCPK:DRAGF) to 800 pence/share, which wins the backing of Dragon's two largest minority shareholders.
- ENOC, which owns 54% of Dragon, needed acceptance from another 23% of the company's shareholders for the takeover to go through, and said it had achieved 29.92% shareholder acceptance and would delist the firm shortly.
- The higher price secured the backing of the oil producer’s two largest minority shareholders, Elliott Advisors and Baillie Gifford, companies that rejected Enoc’s offer in June.
Jun. 18, 2015, 11:48 AM
- Investment manager Baillie Gifford says Emirates National Oil’s offer to buy Dragon Oil (OTCPK:DRAGF, OTCPK:DRAGY) is too low and it would not accept the offer at the indicated price despite it being recommended by Dragon’s board.
- The 7.2% owner of Dragon Oil’s ordinary shares cites the success of the Cheleken contract area offshore Turkmenistan for its views.
- ENOC, a 54% shareholder, last week offered 750 pence/share for the remaining shares it does not already own in the Caspian Sea oil and gas producer, valuing Dragon’s equity at £3.7B ($5.73B).
Jun. 15, 2015, 8:03 AM
- Emirates National Oil agrees to acquire Dragon Oil (OTCPK:DRAGF, OTCPK:DRAGY) for £1.7B ($2.6B), gaining control over wells in Turkmenistan and exploration projects in Iraq, Algeria and the Philippines.
- ENOC, which already holds 54% of Dubai-based Dragon, will pay 750 pence/share for the rest, a 47% premium to Dragon’s closing price on March 13, the business day before their talks were initially disclosed, and 15 pence more than it proposed in May.
May 21, 2015, 11:36 AM
- Dragon Oil (OTCPK:DRAGF +12.3%) jumps after majority shareholder Emirates National Oil Company offers to purchase the entire company for £3.6B.
- ENOC says it is considering a possible cash offer of 735 pence/share, a 14% premium over yesterday's closing price of 645 pence, for the 46% of Dragon it does not own.
- ENOC, which first disclosed an approach in March but not a value, tried to buy the entire company five years ago.
Mar. 17, 2015, 5:26 PM
- Dragon Oil (OTCPK:DRAGF) says it has received an acquisition offer from Emirates National Oil Company, which said separately that its approach reflects an unspecified premium to Dragon's March 13 closing share price of 509 pence/share ($7.52).
- While focused mostly on projects in Turkmenistan, Dragon has been looking to expand outside of central Asia as it seeks to increase total production to 100K bbl/day by 2016 from 78K bbl/day last year on sales of $1.09B.
- Emirates already owns a 53% stake in Dragon.
Oct. 6, 2014, 12:54 PM
- Dubai's Dragon Oil (OTCPK:DRAGF) is proposing a €492M ($789M) cash offer for Petroceltic International (OTC:PTIFF), both companies say, at a 29% premium to its Friday closing price in London.
- Dragon has long sought to diversify beyond its current reliance on Turkmenistan, where it has one successful offshore oil and gas asset, and any deal with Petroceltic would give it access to E&P assets in countries including Algeria, Egypt, Kurdistan and in the Middle East.
Dragon Oil is a leading independent international oil and gas exploration, development and production company.
Sector: Basic Materials
Industry: Electric Utilities
Country: United Arab Emirates
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