Shares in DCC PLC (LSE:DCC) rose 15% following a strategic update revealing a shift in focus to its energy business, which the company sees as its highest-growth area.
In line with this new direction, it announced plans to sell its healthcare division by 2025 and is evaluating strategic options for its technology arm over the next two years.
By concentrating on the energy sector, DCC aims to capitalise on opportunities in energy transition, which it believes offers the best growth potential and returns.
It also expects that proceeds from these divestments will enable cash returns to shareholders while maintaining a strong balance sheet.
"Given the performance of these two divisions, we believe this will be taken well by the market, with the potential to provide significant cash, which the group anticipates will be returned to shareholders," American investment bank Stifel said.
In early trading, the stock was up 739p at 5,705p.