RAK Petroleum and DNO International Complete Merger

Ras Al Khaimah, UAE — RAK Petroleum Public Company Limited today announced that it has completed the merger of its Middle East-North Africa operating subsidiaries into Norway’s DNO International ASA.

The transaction values RAK Petroleum’s operating subsidiaries at USD 250 million and DNO International at USD 1.64 billion based on an independent assessment of the two companies’ oil and gas assets by international petroleum consultants DeGolyer & MacNaughton and preparation of competent person’s reports. 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 percent to 42.8 percent.

“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.  “RAK Petroleum now plans to focus on further non-operated investments in the oil and gas sector,” he commented.  “And 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.
Both companies’ shareholders approved the transaction with strong majorities at specially convened meetings early last November but closing was postponed to allow the normal Norwegian creditor notification period of two months.


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