DNO International ASA (OSE: DNO) is making an all-cash offer of CAD 215 milllion or CAD 2.30 per class A common share to acquire Calvalley Petroleum Inc. (TSX: CVI.A). That represents approximately 60% premium on yesterday’s close but much less so compared to averages as the Canadian company has recently lost a good chunk of its value. Calvalley is active in exploration and development of Block 9 in the Republic of Yemen, where its holdings complement DNO’s well, and exploration of the Gimbi and Metema Blocks in Ethiopia.
DNO has approached Calvalley’s Board of Directors since May but has not made any headway. The company felt that the size of the premium warrants taking the offer directly to shareholders. The offer is expected to commence on or about July 12th. The offer is conditional to certain conditions, such as attaining at least two thirds of Calvalley’s shares. The news follows an operational update from DNO published yesterday concerning drilling activities in Kurdistan region of Iraq and Yemen. DNO says it does not need to attain further financing to finance the offer.
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