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Wednesday 7 December 2016

Threat to Dragon Oil dividend

Takeovers

A PROPOSAL by Emirates National Oil Company (ENOC) for Irish-listed Dragon Oil to scrap dividend payments is a "thinly veiled threat to minority shareholders", it has been claimed.

ENOC said that it will no longer support payment of dividends to shareholders, stepping up the pressure in its bid to takeover the company.

ENOC, which owns 54pc of Dragon Oil, has offered 750 pence per share to buy out minority shareholders of the firm in June. The proposal values Dragon Oil at about £3.7bn (€5.3bn).

Shareholders have until the end of the month to decide on to accept the offer or not. ENOC plans to delist Dragon Oil if its takeover bid is successful.

ENOC's majority stake in Dragon Oil would allow it to vote down any proposal to pay dividends at the company's annual general meeting.

Dragon Oil refused to say whether or not it supports the ENOC proposal.

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