Dragon Oil Drops Takeover Offer for Petroceltic Over Changed Market Conditions

Dragon Oil dropped its plans to make a £510 takeover offer for Petroceltic, referring to changed market conditions.

‘As a result of its announcement, Dragon Oil will, except with the consent of the Irish Takeover Panel, be bound by the restrictions of Rule 2.8 of the Irish Takeover Rules’ reads a note released on Monday. 

Earlier this year, Dragon Oil said it would have sought an irrevocable undertaking to support its offer. 

After the announcement the company would have recommended an offer at 230 pence sterling  per share, Dragon Oil then informed Petroceltic on Sunday that it changed its evaluation due to changed market conditions.

‘Dragon Oil informed Petroceltic on 30 November 2014 that it no longer wished to make an Offer at this time for the Company, citing prevailing market conditions’ wrote Petroceltic. 

The deal would have given Dragon Oil a diversification option, balancing its Turkmenistan-focused portfolio with Petroceltic’s licences in Algeria.