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DNO buys RAK assets for $250 mln in shares

DNO buys RAK assets for $250 mln in shares

Norwegian oil firm DNO International said it would buy oil and gas fields from UAE-based Rak Petroleum for $250 million of DNO stock, after pricing its shares in the upper range of the announced range.

September 5, 2011 10:30 by

“The transaction values DNO International at $1.64 billion corresponding to NOK 9.50 per share and RAK Petroleum’s operating subsidiaries at USD 250 million (before working capital adjustments),” the company said on Monday.

DNO, which agreed in July to buy the assets in return for DNO shares, said then new shares would be issued in a price range of 8.25 to 10 crowns against RAK assets valued at $250 million to $300 million.

DNO is valued at $1.64 billion in an all-share acquisition of oil and gas fields from its main shareholder under the agreement, some 75 percent over its market value, the company said on Monday.

DNO added that the boards of the companies had approved the transaction and offered revised values for the deal.

Shares in DNO rose 6.76 pct to 5.84 crowns by 0729 GMT on Monday. (Reporting by Oslo newsroom; Editing by Jon Loades-Carter)

image from The National, covering the RAK, DNO merger in July.

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