DNO International ASA proposed an unsolicited takeover of Calvalley Petroleum Inc. of Calgary for $214 million to boost its Yemen position, DNO announced.
A Norwegian company, DNO said it decided to take the offer to shareholders after not receiving “meaningful engagement” from Calvalley’s board or senior management regarding an offer DNO said it first made in May.
On July 6, Calvalley issued a statement advising its shareholders against taking any immediate action until the board has time to review the unsolicited offer. DNO said two thirds of Calvalley’s shareholders would have to approve the offer.
DNO expects to start the offer on July 12 with an expiration date of Aug. 16.
Full details of the offer will be included in a formal offer and takeover bid circular to be publicly filed and subsequently mailed to Calvalley's shareholders, DNO said.
Bijan Mossavar-Rahmani, DNO executive chairman, said the acquisition would complement DNO’s Yemen assets and is consistent with the company’s Middle East-North Africa expansion strategy.
Calvalley holds 50% working interest in Block 9 in Yemen’s Sayun-Masila basin and 100% working interest in a production-sharing contract in the Metema and Gimbi blocks in Ethiopia. Calvalley's Block 9 is in the same area as DNO's Yemen assets and operations.