DNO to make cash offer for all shares of Faroe Petroleum

OSLO -- DNO ASA, the Norwegian oil and gas operator, has announced the terms of an offer to be made by DNO ASA for the whole of the issued and to be issued share capital of Faroe Petroleum plc (other than the 105,247,866 Faroe Shares already held by DNO, representing 28.22% of Faroe's issued share capital).

The Offer will be 152 pence in cash for each Faroe Share, valuing Faroe's existing issued and to be issued share capital at approximately £607.9 million.

Of the Offer value of approximately £443.8 million on a fully diluted basis, £402.6 million is attributable to the current issued share capital of Faroe (other than those Faroe Shares already held by DNO and the Faroe Employment Benefit Trust) and the balance £41.2 million is attributable to DNO's understanding of the number of outstanding share options and awards granted by Faroe to its directors, management and employees, representing approximately 7% dilution of Faroe's current issued share capital.

The Offer Price represents a premium of 44.8% to Faroe's share price of 105 pence at the close of business on April 3, 2018, the last business day before DNO announced its first acquisition of shares in Faroe and a premium of 20.8% to Faroe's share price of 125.8 pence at the close of business on Nov. 23, 2018, the last business day before this announcement.