Genel Energy Shares Surge on Rejected £202m DNO Takeover Approach

Shares in Genel Energy plc (LON: GENL) jumped sharply on Friday after the Kurdistan-focused oil and gas producer confirmed it had rebuffed a possible cash takeover approach from Norwegian rival DNO ASA, worth approximately £202 million.

In an announcement, DNO revealed it approached the Genel board on 28 July 2026 with an indicative proposal of 69 pence per share in cash, alongside an alternative offer combining cash and newly issued DNO shares. The Genel board rejected the approach on 4 August, but DNO said it “remains willing to engage” further on the proposal.

The indicative offer represents a substantial 38% premium to Genel’s closing share price on 6 August, and a 30% premium to its three-month volume-weighted average price — explaining the stock’s sharp move higher on the news.

DNO, which operates extensively in the Kurdistan Region of Iraq, argued the deal would offer Genel shareholders certainty of value regardless of the outcome of Genel’s own pending offer for Capricorn Energy, which has attracted rival interest from other bidders. DNO also pointed to weak trading liquidity in Genel shares and the potential for a combined entity to achieve greater scale and financial resilience amid ongoing security and commercial risks in the region.

Under UK takeover rules, DNO must clarify its intentions by 5pm on 4 September 2026 — either announcing a firm offer or walking away, unless the deadline is extended by the Takeover Panel.

The approach remains non-binding and subject to due diligence, with no certainty a formal offer will follow. Investors will now watch closely for further statements from both companies as the 28-day deadline approaches, alongside developments in Genel’s separate pursuit of Capricorn Energy.