Genel Energy Raises Capricorn Bid to $436 Million, Topping DNO in Takeover Battle

Genel Energy (LON:GENL) on Friday raised its all-cash offer for Capricorn Energy (LON:CNE) to $436 million, escalating a months-long bidding war and surpassing a competing proposal from DNO (OSE:DNO). Capricorn's board has reversed its previous recommendation and now supports Genel's sweetened bid.

The Revised Offer

Under the updated terms, Capricorn shareholders are set to receive approximately $5.74 per share. This consideration is comprised of $4.75 in cash and a special dividend of $0.99 per share.

The new offer represents a 10% premium over the $396 million bid submitted by DNO earlier this month. In a statement, Capricorn's board said it withdrew its recommendation for DNO’s offer, asserting that Genel's latest proposal provides shareholders with "superior value, certainty and deliverability."

A Protracted Bidding War

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The fight for Capricorn's assets, particularly its upstream oil operations in Egypt's Western Desert, has seen the company's board change its recommendation twice. The board initially approved a $360 million offer from Genel in July before switching its allegiance to DNO's higher bid.

This latest move by Genel appears to place it in a commanding position. The company announced it has already secured commitments from major Capricorn shareholders representing approximately 39.1% of the issued share capital. Supporting investors include Palliser Capital, Newtyn Management, Kite Lake Capital, and Madison Avenue Partners.

What It Means for Investors

The renewed support from Capricorn's board, backed by a significant portion of the shareholder base, adds a degree of clarity for investors following the takeover saga. The substantial shareholder commitments provide Genel's offer with a strong foundation for approval, potentially signaling an end to the competitive bidding process and paving the way for the deal's completion.