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Genel Energy Board Rejects DNO's $273 Million Takeover Proposal

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Norwegian oil and gas operator DNO ASA on Friday said its proposed 202 million British pound ($273 million) bid for the acquisition of the UK-based independent oil and gas company Genel Energy was rejected by the latter's board last week.

DNO, through its wholly owned subsidiary DNO Iraq, proposed a cash offer of 69 pence per Genel share, which represented a 38% premium to Genel's closing share price on Aug. 6 and a 30% premium to its three-month volume-weighted average closing share price, DNO said in a statement.

Alternatively, Genel shareholders could choose to receive a combination of cash and newly-issued DNO shares equivalent in value to the 69 pence-per-share cash offer.

DNO said the proposal would help create a stronger company in Iraq's Kurdistan region, where security and commercial risks make scale and financial strength important.

"Although the Genel Board rejected the approach on [Aug. 4 2026], DNO remains willing to engage with the board in relation to the proposal," DNO said in its statement.

The proposal remains non-binding and is conditional upon fulfillment of customary pre-conditions, including satisfactory due diligence. There is no certainty that a firm offer will be made.

Under UK takeover rules, DNO is required to confirm by Sept. 4 that it will either announce a firm intention to make an offer or declare that it does not intend to proceed.

The deadline can be extended with the consent of the takeover and mergers panel, the statement said.

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