DNO said it has agreed to a deal to buy Capricorn Energy, exceeding an earlier bid for the British oil and gas exploration and production company from Genel Energy.

Norway-listed DNO said Tuesday that its bid values Capricorn at around $396 million, or 292 million pounds, representing a $36 million premium to the implied value of Genel's offer on a constant currency basis.

Under DNO's offer, Capricorn shareholders will receive $5.214 in cash for each share that they own, comprising $4.224 in cash and a special dividend of $0.99.

"Capricorn will add another business with scale, cashflow and growability to our existing operations in Kurdistan and the North Sea," said DNO Chairman Bijan Mossavar-Rahmani. "DNO has ambitious plans to build a significant Egyptian business through investment in Capricorn's portfolio, participation in new license rounds and additional acquisitions. DNO's technical capability, financial strength and can-do attitude will fuel that growth."

Tuesday's announcement comes after Genel in July agreed to a deal to buy Capricorn for $4.74 a share, or 3.57 pounds, valuing Capricorn at around $360 million. Genel said in a statement that it was considering its next steps following DNO's offer and urged Capricorn shareholders to take no action for now.

Separately, DNO said last month that it had approached Genel over a possible 202 million-pound takeover proposal.

"The Genel board has not yet engaged constructively with DNO regarding DNO's Genel proposal," the Norwegian company said Tuesday.