Norwegian oil and gas company DNO ASA has made a possible cash offer to buy Genel Energy plc, valuing the company at around £202 million (about $271 million).
Genel’s Board rejected the proposal on August 4, 2026, but DNO said it is still open to discussions.
Under the proposed deal, Genel shareholders would receive 69 pence per share. This represents a 38% premium compared with Genel’s share price before the offer became public and a 30% premium compared with the company’s average share price over the previous three months. Following the news, Genel’s shares increased by 18% on Friday morning.
The offer would be made through DNO Iraq AS, a fully owned subsidiary of DNO. The company also suggested another option where Genel shareholders could receive a mix of cash and newly issued DNO shares with the same total value.
DNO said the proposal offers several advantages, including a higher value for Genel shareholders, more certainty regardless of the outcome of Genel’s planned deal with Capricorn Energy plc, and an opportunity for shareholders to become part of DNO’s wider business.
The company also highlighted that Genel shareholders could benefit from improved liquidity, as trading activity in Genel shares has been limited.
DNO said having larger and financially stronger companies is important for operating in the Kurdistan Region of Iraq due to ongoing security and business challenges.
The proposal is still preliminary and depends on further checks and negotiations. Under UK takeover rules, DNO must decide by September 4, 2026, whether it will officially move forward with a firm offer or withdraw its proposal.
