Genel Energy Raises Capricorn Offer to $436 Million, Topping DNO

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4▲2 ▼0Impact / 5
Summary · why it matters

Genel Energy raised its cash offer for Capricorn Energy to $436 million, outbidding rival DNO and winning renewed backing from Capricorn's board. The revised terms give Capricorn shareholders approximately $5.74 per share, made up of $4.75 in cash and a $0.99 special dividend, a 10% premium to DNO's offer. Genel first secured Capricorn's board support with a $360 million offer in July, before DNO intervened with a higher $396 million bid earlier this month; Capricorn's board has now withdrawn its recommendation for DNO's bid and backs Genel, saying it delivers shareholders superior value, certainty and deliverability. Genel has also locked in support from key shareholders including Palliser Capital, Newtyn Management, Kite Lake Capital and Madison Avenue Partners, securing commitments covering roughly 39.1% of Capricorn's issued share capital. Capricorn Energy shares rose 11.9% to 442 pence in early London trading, touching a 15-year high, as its Western Desert assets in Egypt draw competing bids.

Impact on assets 4

Energy▲
Capricorn Energy PLC
CNE
▲ PositiveCapitalrelevance

Capricorn's board backs Genel's raised $436M cash-and-dividend offer, a 10% premium to DNO's bid, lifting its shares.

Genel Energy Plc
GENL
▲ PositiveCapitalrelevance

Genel raised its cash offer for Capricorn to $436M and won board backing plus 39.1% shareholder commitments, advancing the acquisition.

Financials▲

Off-coverage companies 4

Kite Lake Capitali
Private± Mixedrelevance

Madison Avenue Partnersi
Private± Mixedrelevance

Newtyn Managementi
Private± Mixedrelevance

Palliser Capitali
Private± Mixedrelevance