Dragon Oil shares up almost 10% on bigger takeover offer

Shares in Dragon Oil were up almost a tenth after Emirates National Oil Company upped its takeover price to satisfy Dragon Oil’s minority shareholders.

By 1131 BST shares in Dragon Oil were up by 9.02% to 799.09p on the news of the bigger offer of 800p per share

On Sunday, Enoc said its final offer was accepted by two largest minority shareholders Baillie Gifford and Elliott Capital Advisors.

In June Enoc offered 750p per share to take over the company, but this was met with opposition.

Enoc owned more than half of Dragon Oil but needed more than 23% of the company to take it private, but Ballie Gifford originally said the offer “materially undervalued” Dragon Oil.

On Sunday, a Baillie Gifford representative said the 800p offer was a good exit price, while Elliot Capital said it was now pleased to support the bid and recommended all shareholders to accept the increased offer.