DNO ASA, a Norwegian company active in the oil industry, has expired its cash offer to acquire Capricorn Energy, an oil producer based in Egypt, due to the failure to hold shareholder meetings by the deadline of November 7, 2023. This offer, which was made by DNO Bidco AS, the company's acquisition arm, is no longer valid, and Genel Energy's offer is now introduced as the only remaining proposal for the company.
Details of DNO and Genel's Offer
DNO ASA submitted its cash offer to acquire Capricorn Energy on September 17, 2023. Subsequently, Genel Energy, another competitor of DNO, increased its offer to $5.74 per share, bringing Capricorn's total value to approximately $436 million. The board of Capricorn has approved this offer. On September 28, DNO announced that the terms of this offer are final and there will be no further price increases.
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Market Impacts and Future Steps
Capricorn Energy shareholders approved Genel's initial terms in August, and the company stated that no further meetings are needed for the new proposal. Now, the main condition remaining for finalizing this deal is approval from the Egyptian government. Capricorn expects this deal to be completed in the fourth quarter of this year.
Given recent developments, the oil and energy market in Egypt will be affected by these changes. DNO, which is seeking to expand its operations in the Middle East, will now need to focus on its new strategies. Meanwhile, Genel Energy, with its position as the sole bidder, can strengthen its power in the market and seize new opportunities for developing oil projects in Egypt.
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