South Korea company gets nod on Dana shares

South Korea's state-run oil company Korea National Oil Corp. (KNOC) said Friday that it has received acceptances for 64.25 per cent of Dana Petroleum Plc shares in its bid to take over the British oil and gas explorer.

"Following its purchase of 29.5 per cent of Dana shares on September 17, the corporation has received acceptances from shareholders for the sale of 34.76 percent of Dana shares as of 1 p.m. Sept. 23, when its tender offer expired," Yonhap News quoted the KNOC as saying.

The 34.76 stake from shareholders who have accepted the offer will officially be purchased before Oct. 7, it said. The company earlier sought to secure over 90 percent of Dana shares.

"The KNOC confirms that it has withdrawn its proposed acceptance rate of 90 percent and that it has secured the approval of all related governments," the statement said.

Instead, the KNOC will extend its offer to purchase Dana shares until further notice and delist the British company once it secures a stake over 75 percent, it said.

"Once the company is delisted, the value and liquidity of shares still held by shareholders will significantly decrease," the KNOC said. "The company strongly urges those shareholders who have not accepted the offer to do so." The takeover, if successful, will be the biggest hostile takeover by the KNOC as it is expected to cost up to 3 trillion won (US$2.6 billion) at 18 British pounds or $28.18 per share.

The KNOC's move to acquire Dana comes as South Korea, which currently depends on imports for nearly 97 per cent of all its energy needs, is struggling to increase its independent production of oil.

The acquisition of Dana will put the country's independent oil production rate at a double-digit number for the first time in its history, the KNOC said.

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