Capricorn Energy PLC (LSE:CNE, OTC:CRNZF) has backed a US$396 million (£292 million) cash takeover by Norway’s DNO ASA, switching its recommendation from an earlier Genel Energy PLC (LSE:GENL, FRA:4VL, OTC:GEGYY) offer after DNO tabled a proposal worth around 10% more.
It comes after Genel snubbed a takeover approach from DNO.
DNO is now offering Capricorn shareholders an aggregate US$5.214 per share, comprising US$4.224 in cash and an intended US$0.99 special dividend.
That equates to roughly 384p per share at the announcement exchange rate, a 45% premium to Capricorn’s 266p closing price immediately before the offer period began in March.
The proposal is US$0.474 per share above Genel’s US$4.74 total offer value and increases Capricorn’s implied valuation by approximately US$36 million.
Capricorn’s board intends to recommend the DNO transaction unanimously and said it does not currently intend to ask the court to sanction the Genel scheme, although that rival offer has not formally lapsed.
Chief executive Randy Neely said the higher all-cash proposal “maximises the value created by the Capricorn team and importantly increases the return for shareholders”.
For DNO, the acquisition would establish Egypt as a third core operating region alongside the North Sea and Kurdistan.
The enlarged group would have pro forma 2025 production of 156,939 barrels of oil equivalent per day, with 443.3 MMboe of 2P reserves. Completion is targeted for Q4 2026 or Q1 2027, subject to Capricorn shareholder approval, court sanction and Egyptian regulatory and government approvals.
