An improved offer from Emirates National Oil Company (ENOC) for Irish-listed oil explorer Dragon Oil “significantly undervalues” the company, according to an asset management company acting on behalf of minority shareholders.
Setanta Asset Management Limited, whose clients currently own 15.2m shares of Dragon Oil, equivalent to 3.1% of the company’s ordinary share capital, said it noted the recent offer by majority shareholder ENOC to buy the interests of the company’s minority shareholders for 750p per share.
Setanta urged ENOC to “to consider an increased offer that would more reasonably reflect the long-term value of the business”.
Earlier this month Dragon announced that it had reached a deal with ENOC, as part of which ENOC increased its offer to 750 pence in cash per share, valuing the company at approximately 3.7 billion pounds.
