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Korea National Oil to tender for Dana Petroleum convertible bonds
By Jennifer Chiou
New York, Aug. 20 - Korea National Oil Corp. announced a cash offer for the convertible bonds as well as the entire share capital of Dana Petroleum plc.
In its acknowledgment of the Korea National announcement, Dana said that it will publish its interim results on Aug. 27. Dana added that its board advised its shareholders and bondholders to refrain from taking action in the offers.
Under the terms of the bond offer, Dana holders will be entitled to receive £141,509.43 in cash for each £100,000 principal amount of bonds, according to a news release.
This is contingent on the share offer being declared unconditional on or prior to Nov. 17. After that date, the offer will be £142,959.43 in cash for each £100,000 principal amount of Dana bond. Korea National said that this reflects the adjusted exchange price of the Dana convertible bonds, which applies in the event of a change of control, plus interest that would be due on Jan. 17.
Dana said that the offer for its stock stands at 1,800p per share. Combined, the offers value Dana's shares and bonds at roughly £1.87 billion.
The current exchange price for the bonds is £16.45 per Dana share. If the share offer is declared unconditional, holders will be able to convert their bonds at the change-of-control price. Assuming that the exchange price does not change, the change-of-control price would be £12.72 per Dana share. The company's shares (London: DNX) closed at 1,711.71p apiece on Thursday.
Questions may be directed to Dana chairman Colin Goodall or chief executive officer Tom Cross (01224 652 400), or to Korea National's financial adviser, Bank of America Merrill Lynch, at 44 20 7996 1000 (attn: Simon Mackenzie Smith, Philip Noblet, Andrew Osborne or Anya Weaving).
Korea National is a fully state-owned energy company. Dana is an Aberdeen, Scotland, oil and gas exploration and production company with operations mainly in the North Sea and other exploration assets in Europe and Africa.
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