The merger of RAK Petroleums Middle East-North Africa operating subsidiaries into Norways DNO International is now complete.
Independent assessment
The transaction values RAK Petroleum's operating subsidiaries at US$250 mn and DNO International at US$1.64 billion, based on an independent assessment of the two companies' oil and gas assets by international petroleum consultants DeGolyer & MacNaughton.
A total of 153,422,343 DNO International shares were issued to RAK Petroleum as consideration for the merger, increasing the latter's shareholding in the Oslo-listed company from 30 per cent to 42.8 per cent.
"We are excited about the next phase of growth for both companies," said Bijan Mossavar-Rahmani, who will continue in his role as Chairman and Chief Executive Officer of RAK Petroleum and Executive Chairman of DNO International.
Future plans
"RAK Petroleum now plans to focus on further non-operated investments in the oil and gas sector. DNO International now has an even stronger and diversified platform for growth with plans for a dual listing on the London Stock Exchange in 2012," said Mossavar-Rahmani.
RAK Petroleum will maintain offices in Ras Al Khaimah and Dubai and a small team of experienced legal, commercial, technical and financial professionals.
DNO International, with a combined post merger staff in excess of 600, will expand its offices to include Muscat and Ras Al Khaimah in addition to its existing presence in Oslo, Erbil, Sana'a, Dubai, Tunis and London.
