SKorea's KNOC wins hostile takeover of Dana Petroleum
South Korea's state-owned Korea National Oil Corp. on Friday sealed a hostile takeover of Dana Petroleum after securing 64-percent support from the British oil explorer's shareholders.
The news comes one month after KNOC launched a hostile bid for the group, which has operations in Europe and north Africa, for 1.87 billion pounds (2.3 billion euros, 2.9 billion dollars) or 1,800 pence per share.
KNOC said in a statement that it now owns or has received shareholder acceptances for around 64.26 percent of Dana shares.
The firm added that it has waived the 90-percent requirement for acceptances that it initially set, and extended the offer until further notice.
As a result, the company declared the bid "unconditional" -- meaning that all of its takeover conditions had been met.
"KNOC is ... pleased to announce that the share offer has become unconditional as to acceptances," it said.
Dana Petroleum, based in Aberdeen, northeastern Scotland, which serves the North Sea oil industry, has yet to issue an official response and was not immediately available for comment.
South Korea is the latest Asian power to seek foreign assets to help meet soaring domestic demand for energy.
The Korean state-owned company plans to delist Dana from the stockmarket once it reaches 75 percent and added that it will automatically buy the remaining stock once it reaches the 90-percent acceptance level.
"KNOC is seeking to acquire 75 percent or more ... so that Dana can be delisted," a spokesman told AFP. "In that case the market value and liquidity of shares still held by shareholders will significantly decrease.
"We urge those shareholders who have not accepted the offer to do so immediately."
The Korean firm made its first approach to Dana in July and launched its hostile offer on August 20 after the pair failed to agree on a price.
British competition authorities gave the deal the green light on Thursday, removing a potential regulatory obstacle.
South Korea, which must import virtually all its energy needs, has been moving more aggressively to secure stable overseas supplies in the face of competition from its giant neighbour China and other emerging market countries.
KNOC acquired a 50 percent stake in Peru's Petro-Tech Peruana for 450 million dollars in February 2009 and bought Canda's Harvest Energy Trust for 3.9 billion dollars last October.
But it lost out to Chinese state firm Sinopec in the competition for Switzerland-based Addax Petroleum last year.
Earlier this month, Dana released a lengthy document outlining its growth strategy and suggesting a considerably higher valuation was justified.
The British group argued that the bid "substantially undervalues Dana" and management unanimously recommended that shareholders reject the KNOC offer.
However, KNOC refused to raise its bid for Dana, which has interests in 36 producing oil and gas fields, including in Egypt and the North Sea.
"Despite resistance from Dana, KNOC has won the day, as we expected," said Westhouse Securities energy analyst Peter Bassett in reaction to Friday's news.
© 2010 AFP