Story
Capricorn Energy Shares Hit 15-Year High on Revised $436 Million Genel Takeover Bid
Summary
Genel Energy has raised its cash offer for Capricorn Energy to $436 million, winning back the board's recommendation from rival DNO and sending Capricorn shares soaring to their highest level since 2011.
Shares in Capricorn Energy surged to a 15-year high on Friday after UK-based Genel Energy submitted a revised cash offer of $436 million, escalating the bidding war with Norway's DNO. Capricorn's board immediately withdrew its support for DNO's proposal and recommended the new, higher bid from Genel.
The Revised Offer
Genel's latest offer represents a significant increase over its initial $360 million bid in July and outbids DNO's intervening $396 million proposal. Under the revised terms, Capricorn shareholders are set to receive approximately $5.74 per share.
This consideration is composed of:
- $4.75 in cash
- A special dividend of $0.99 per share
The total value represents a 10% premium over DNO's offer. In a statement, Capricorn's board said it now supports Genel's bid because it delivers shareholders "superior value, certainty and deliverability."
Market Reaction and Shareholder Support
AdThe market reacted swiftly to the development. In early London trading, Capricorn Energy shares (CNE) jumped 11.9% to 442 pence, having touched an intraday high of 445 pence, a level not seen since August 2011.
Crucially, Genel has secured irrevocable commitments to accept its offer from several key Capricorn shareholders. Investors including Palliser Capital, Newtyn Management, and Kite Lake Capital, who collectively hold approximately 39.1% of Capricorn’s issued share capital, have backed the deal, providing a strong foundation for its approval.
Context of the Takeover Battle
The intense competition for Capricorn highlights the value of its upstream assets in Egypt's Western Desert. Both Genel and DNO are seeking to expand their foothold in the region, making Capricorn a highly sought-after strategic target.
This latest development marks the second time Capricorn's board has switched its recommendation in the months-long takeover saga. The board initially backed Genel's offer in July before pivoting to support DNO's higher bid earlier in September, only to revert to Genel following the latest price increase.
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