Dragon Oil receives 735p takeover bid from Dubai's ENOC

Dubai's national oil company, Emirates National Oil Company (ENOC), has agreed to acquire London and Ireland-listed Dragon Oil for £3.6bn.

ENOC, which made an initial approach for the Turkmenistan-focused Dragon on 17 March some six years after an earlier bid, has offered 735p per share after talks with Dragon's board.

The two companies did not have to travel far for discussions, as Dragon's headquarters are in ENOC's offices in Dubai.

The offer price is at premium of 44.3% to the closing price on 13 March 2015, and a premium of 38% to average share price over the last 90 days before then.

ENOC said the price "marks a substantial increase since the opening proposal put forward to the [Dragon board] on 15 March 2015".

Dragon's shares were trading around the 600p level last year until the oil price slump knocked them back below 500p.