Dana to meet Korean suitors and pave way for £1.7bn deal

City A.M. Reporter
LONDON-listed oil explorer Dana Petroleum and would-be buyer Korea National Oil Corp have agreed to meet, ending a tense stand-off between the two sides, a source familiar with the matter said yesterday.

Dana and KNOC are scheduled to hold a meeting this week, the source said, in what will be the first direct talks between the pair since KNOC tabled a revised £18-per-share indicative cash offer for Dana on 23 July.

The talks are expected to result in an agreement by Dana to open its books and begin talks on a takeover that would value the Aberdeen-based oil explorer at £1.7bn.

KNOC has provided Dana with evidence that it would be able to fund its offer, removing a major reason for not engaging with its suitor.

Last week, leading Dana shareholders Schroders, BlackRock and JP Morgan Asset Management were said to be pushing Dana to enter formal takeover discussions. KNOC declined to comment, while Dana could not immediately be reached.

Dana shares closed at £17.11 on Friday, valuing the company at about £1.6bn.