By John Lee.
A possible cash offer for Genel Energy plc has been put forward by Norwegian oil and gas operator DNO ASA, valuing the company at approximately £202 million [approx $271 million]. The approach was rejected by the Genel Board on 4 August 2026, but DNO says it remains willing to engage.
Under the indicative cash offer, Genel shareholders would receive 69 pence per share, representing a premium of 38 percent to the closing price on 6 August 2026 and a 30 percent premium to the volume-weighted average closing price over the preceding three months. Genel's share price was up 18 percent on Friday morning.
The offer would be made by DNO Iraq AS, a wholly owned subsidiary of DNO. A cash-and-share alternative is also proposed, under which shareholders could elect to receive a combination of cash and newly issued DNO ordinary shares of equivalent value.
DNO cited several reasons for the proposal, including:
- A substantial premium to Genel's undisturbed share price
- Certainty of value regardless of the outcome of Genel's own offer for Capricorn Energy plc, announced on 2 July 2026
- The offer not being conditional on completion or lapse of the Capricorn offer
- A liquidity event for Genel shareholders given poor trading liquidity in Genel shares
- Immediate participation in DNO's diversified, growth-oriented business for shareholders electing DNO shares
DNO noted that scale and financial robustness are essential in the Kurdistan Region of Iraq given continuing security and commercial risks.
The proposal is non-binding and subject to customary pre-conditions, including completion of due diligence. Under the UK Takeover Code, DNO must announce by 4 September 2026 either a firm intention to make an offer or that it does not intend to proceed.
The full statement from DNO can be view here.
(Sources: DNO, Genel Energy)
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