DNO ASA, a Norwegian oil company, has made changes to its offer for Capricorn Energy plc, converting it to a fully cash structure. This change was announced on September 1 and following new developments on September 17, Capricorn shareholders will have the right to receive the full purchase value in cash from DNO Bidco AS.
Details of the New Offer Structure
According to the new terms, DNO, DNO Bidco, and Capricorn have stated that the revised structure provides greater assurance for shareholders regarding the value of the transaction. In the initial offer, the completion of the deal depended on the ability of Capricorn's board to declare and pay a permitted dividend in full before the purchase became effective. With the shift to a cash offer, this dependency has been removed, allowing shareholders to view the transaction with greater confidence.
Board Support and Upcoming Meetings
The boards of all three companies have agreed to accept the new terms. Capricorn's directors intend to collectively ask shareholders to vote in favor of the buyout proposal at the upcoming court meeting and to support related resolutions at the general meeting. These meetings will be held soon and as soon as possible, as DNO continues to advance its buyout proposal.
This change in the offer structure reflects DNO's desire to enhance transparency and assurance for Capricorn shareholders. It is expected that the process of finalizing this agreement will accelerate with the holding of meetings and voting.
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