Baillie Gifford, the largest independent investor in the Dublin-based Dragon Oil, said the takeover offer from majority owner Emirates National Oil Co (ENOC) “materially undervalued” the company. ENOC, which owns 54 per cent of Dragon Oil, raised its offer this week to buy out the minority shareholders to 750 pence per share, valuing the stock it does not already own at around 1.7bn pounds ($2.7bn). Its second-biggest investor Baillie Gifford, which owns 7.2 per cent of the shares, said on Thursday to the media that the offer did not fully value the future growth potential of the firm. “We encourage shareholders to consider the case presented here, and reflect on the growth infrastructure that is presently being assembled before making their own determination whether or not to accept the current Offer,” said Richard Sneller, head of emerging markets at the fund manager to Reuters.“We believe Dragon Oil should be valued taking into account its long-term growth prospects, not just its steady-state cash-generating ability’’
