State-run Korea National Oil Corp (Knoc) said it had control of 64 per cent of British oil explorer Dana Petroleum, paving the way for the biggest hostile acquisition by a South Korean firm to take place.
Knoc said today the $2.6 billion offer for Dana had been declared unconditional after it waived an original clause requiring it to have 90 per cent acceptances from shareholders.
The Korean company has since received acceptances from 34.8 per cent of shareholders to add to the 29.5 per cent stake it bought in Dana last week..
The offer would now be extended, said Knoc, and remain open until further notice.
Knoc needs acceptances from 75 per cent of shareholders before it can delist Dana from the London Stock Exchange and 90 per cent before it can begin a squeeze-out process.
In August, Knoc said it had secured non-binding letters of intent to accept its bid from around 49 per cent of shareholders.
South Korea has given the oil company a $6.5 billion war chest this year to compete with energy-hungry Asian state firms in a race to secure supplies and to cut the economy's almost total dependence on imported oil.
The Knoc/Dana deal, if successful, would be the biggest hostile acquisition by a South Korean firm and biggest deal for Knoc, which purchased Canadian group Harvest Energy last October for $1.7 billion.
Knoc has sought to acquire Dana for 1,800 pence a share and Dana's shareholders had until September 23rd to accept the offer. Dana shares closed at 1,793 pence yesterday.
Analysts believe the bid is likely to succeed as Knoc has refused to budge on price and no new bidder has emerged.
Dana has maintained it is worth more than the 1,800 pence a share offer from Knoc citing an independent valuation.
Reuters