Capricorn Energy agrees USD360 million takeover bid from Genel Energy
Capricorn Energy PLC on Thursday accepted a USD360 million offer from London-based oil and gas firm Genel Energy PLC.
Capricorn, the oil and gas exploration and production company with operations in Egypt, said the cash offer from Genel values each share at USD4.74, or 357 pence. This comprises USD3.75 in cash and an intended special dividend of USD0.99.
On Thursday morning, shares in Capricorn Energy jumped 19% to 342.00p each in London, while Genel Energy leapt 9.1% to 56.50p.
The special dividend will only be paid should the scheme by which the takeover is being facilitated becomes effective. This is expected in the second half of 2026.
Genel Energy has irrevocable undertakings for just over 39% of Capricorn shares, including backing from Palliser Capital (UK) Ltd, Newtyn Management LLC, Kite Lake Capital Management (UK) LLP, and Madison Avenue Partners LP.
Genel said it sees the acquisition of Capricorn's Egyptian Western Desert portfolio as an "attractive strategic pillar" to its business.
It said the acquisition will create an independent energy company of scale with a "strong, low leverage balance sheet, significant production, reserves and resource upside".
Genel Chief Executive Paul Weir called it a "landmark" deal, "a move that delivers our strategic intent, reshapes our company's growth trajectory, diversifies our portfolio of oil and gas fields and begins our role as a partner in Egypt's energy future."
"The acquisition is expected to realise accretive cash flow and returns over the coming years," he added.
Capricorn Chief Executive Randy Neely said while the business has "delivered strongly against our strategic priorities", the firm requires "greater scale to materially improve trading liquidity."
"We believe the transaction with Genel crystallises the value created by Capricorn while providing shareholders with a clear and efficient exit," he said.
On Wednesday, Capricorn agreed to a further extension to the offer deadline for Alamadiyaf al-Masiyyah, a member of the Cafani Group, after it received "multiple unsolicited non-binding proposals".
Capricorn Energy first disclosed Alamadiyaf al-Masiyyah's interest in March, and there have been multiple extensions to the offer deadline since then.
On Wednesday, Capricorn said Alamadiyaf al-Masiyyah "continues to progress its funding arrangements", as the deadline was extended to July 29.
In May, Capricorn itself walked away from a possible bid for Deltic Energy PLC after talks between the two.
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