Norwegian oil and gas company, DNO International, has announced that it has decided not to proceed with its proposed all-cash takeover of Calvalley Petroleum Inc
DNO is withdrawing its bid after subsequently discovering that a partner with Cavalley at the firm’s Malik Block 9 joint venture in Yemen was looking to sell its 25 per cent stake.
DNO International previously announced on 5 July, 2012, its intention to commence the offer on or about 12 July, 2012, by way of publication of an advertisement and filing of a formal take-over bid circular. At that time, DNO International had not received any meaningful engagement from Calvalley's board of directors or senior management.
Following DNO International's announcement, Calvalley in turn disclosed that it had received from one of its partners a notice that set forth the provisions under which such partner intends to dispose of its 25 per cent working interest in Block 9 in Yemen to a third party.
Calvalley has an option to step in and buy all or part of its minority partner’s stake to add to its own interest.
