Norwegian energy company DNO has stated that it will not increase its offer for Edinburgh-based Capricorn Energy despite rival suitor Genel offering higher terms last week.
DNO is offering $396 million (£292m) in cash and said it retains a “highly disciplined approach to M&A”. Accordingly it confirms that the financial terms are final and will not be increased.
The new cash offer from Genel values Capricorn at $436m and has been recommended by the board of Capricorn, formerly Cairn Energy.
DNO said it continues to rigorously evaluate a pipeline of opportunities, both across the North Sea and the Kurdistan Region of Iraq and other areas in which DNO can successfully deliver its strategy.
It has had positive interactions with the Egyptian authorities in respect of its offer for Capricorn and continues to evaluate Egypt for investment opportunities.
“DNO values its ongoing relationship with Genel, its partner in the Tawke licence in the KRI, and wishes it every bit of luck,” it said.
The Norwegian oil and gas operator indicated on 7 August that it would make an offer for Genel but on 4 September it said it did not intend to make such an offer.
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