Dragon Oil, Petroceltic in takeover discussions

Irish oil and gas exploration company Petroceltic is in detailed discussions regarding a possible offer to be made by Dragon Oil to take over the company.

In a statement issued today, Petroceltic said that Dubai-based Dragon Oil has submitted to the Board of Petroceltic proposed offer terms of 230 pence sterling in cash per Petroceltic share. The announcement has sent the company’s share price up 20 pct.

According to the Irish Examiner, the potential firm offer by Dragon Oil values the company at £492 million ($785.4 million) in total.

“The Board of Petroceltic has informed Dragon Oil that, subject to consultation with Petroceltic’s shareholders, it would be willing to recommend a firm offer at the level of the proposed offer if such an undertaking is obtained, and if the offer is made firm with conditions acceptable to Petroceltic,” the Irish oil company has informed.

The company has said that there can be no certainty that any offer will be made or as to the terms of any offer and advised its shareholders not to take any action this time.