Dubai’s ENOC to acquire Dragon Oil for $1.9 billion

Dubai's state-owned Emirates National Oil Company (ENOC) is set to gain full control over Turkmenistan-focused Dragon Oil Plc, by acquiring the 48.5 per cent shares that it currently doesn't own, for approximately $1.9 billion.

Through the acquisition, ENOC aims to expand its exploration and production activities in oil rich Turkmenistan, and move forward with its strategy to become a major integrated oil and gas company.

Presently ENOC owns around 265 million Dragon Oil shares representing 51.5 per cent of its share capital.

Under the terms of the transaction, Dragon Oil shareholders will be entitled to receive 455 pence of every Dragon Oil share, representing a 35 per cent premium over the closing price of 338 pence as on 3 June 2009, the last trading day prior to the announcement of the deal.

The offer price values the entire share capital of Dragon oil at approximately $3.9 billion.

The transaction is expected to close by January 2010, subject to necessary approvals including that of 75 per cent of Dragon Oil's minority shareholders.

ENOC's chief executive Saeed Khoory said, ''This acquisition is an exciting development for ENOC and represents a major step in ENOC's strategy of building a vertically integrated oil & gas group with a strong upstream position.''