Gulf Oil and Gas accountACCOUNT

KNOC to Complete Bid Package For Dana Petroleum

Source: Financial Times 7/30/2010, Location: Asia

Korea National Oil Corporation (KNOC) is close to arranging the loans needed to launch a formal £1.7bn offer for Dana Petroleum as the UK oil explorer battles to convince its shareholders to push for a higher offer.

KNOC, South Korea’s state oil company, has letters of commitment from a group of lending banks and will deliver them to Dana’s advisers possibly as early as Saturday, people familiar with the situation said. The acquisition loan, which is being arranged by KNOC’s own finance team through mostly Asian banks, is required before it can make a firm offer under UK takeover law. Dana last week argued that negotiations could not progress until it had been given assurances about the Korean state company’s ability to finance an offer.

Tom Cross, chief executive, this week visited most of Dana’s 10 largest shareholders to discuss the Korean approach alongside Philip Dayer, a senior non-executive director. Schroders, Dana’s largest investor with 13 per cent, has publicly called for the board to recommend the putative £18 a share offer. After meeting with Mr Cross on Tuesday its position remains unchanged, according to people close to the talks.

Two top five investors, however, supported Dana management’s request for KNOC to provide evidence that funds are in place before allowing due diligence to begin, although they are keen for Dana to negotiate. A separate top 10 institutional shareholder said: 'We think £18 is not the right price for the whole business. Maybe it is for the production assets, but not the exploration assets. Dana wants to engage with the Koreans, but at the moment we have a quasi-hostile situation, and that is not the best way to do things.'

Dana’s large shareholders include BlackRock, JPMorgan, Scottish Widows, HSBC, Legal & General and Allianz. Over 10 per cent of the shares are held by arbitrage hedge funds that have bought shares in recent weeks with the aim of profiting from a possible deal.

A senior Korea-based industrial source said KNOC had been left 'perplexed' by Dana’s questioning of its access to funds. 'KNOC is a 100 per cent state-run company with various funding sources available. It has a very good track record. It is somewhat perplexed by the position of Dana’s board of directors,' the person said.

Oil & Gas Companies News in South Korea >>

Malaysia >>  11/20/2019 - Petrofac announces awards and contract extensions with a combined value of more than US$120 million, delivering against the Group’s strategy to positi...
Kazakhstan >>  11/18/2019 - CNPC signed a Memorandum on expanding cooperation with KazMunayGas (KMG) and a Memorandum on natural gas cooperation with the Ministry of Energy of th...

Indonesia >>  10/29/2019 - PT Pertamina Rosneft Pengolahan dan Petrokimia, joint venture of PJSC Rosneft Oil Company and Indonesian state oil and gas company Pertamina, signed a...
China >>  10/21/2019 - Total has signed a shareholders’ agreement with Chinese state-owned Zhejiang Energy Group (ZEG), to create a joint venture company dedicated to the su...

Related Categories: Camp Building  Cleaning Equipment, Services  Communication  Corrosion Products/Services  Development  Exploration  Food Supplies  General  Labor Services  Land & Leasing  Mine Clearance  Oil & Gas Companies  Production  Service Companies  Skilled Labors  Transportation, 4X4 Trucks  Unskilled Labors  Utility Systems  Waste Disposal  Water Supply Services  Welding Products/Services 

Related Articles: Camp Building  Cleaning Equipment, Services  Communication  Corrosion Products/Services  Development  Exploration  General  Labor Services  Land & Leasing  Mine Clearance  Oil & Gas Companies  Production  Service Companies  Skilled Labors  Transportation, 4X4 Trucks  Utility Systems  Water Supply Services  Welding Products/Services 


South Korea Oil & Gas 1 >>  2 | 3 |

More News

Related Links

AZ BD BN CN GE HK ID IN IR JP KG KH KR KZ LK MM MN MY PG PH PK RU SG TH TJ TM TW UA UZ VN
Gulf Oil and Gas
Copyright © 2019 Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.