Genel Energy agrees higher recommended takeover price for Capricorn

Genel Energy PLC (LSE:GENL, FRA:4VL, OTC:GEGYY) has raised its recommended cash offer for Capricorn Energy PLC (LSE:CNE, OTC:CRNZF) to US$5.74 per share, valuing the company at around US$436 million (£330 million) and trumping rival DNO’s revised proposal by about 10%.

The offer comprises US$4.75 in cash and a US$0.99 special dividend, equivalent to 434p per Capricorn share at the exchange rate used in the announcement.

That compares with DNO’s acquisition value of US$5.214 per share, leaving Genel’s proposal US$0.53 higher.

Capricorn’s board has withdrawn its recommendation of the DNO offer and backed Genel’s increased bid.

Genel has also secured irrevocable undertakings covering around 39.1% of Capricorn’s issued shares, while the acquisition itself has already received the required shareholder approvals.

Egypt’s competition authority has cleared the transaction, leaving the separate Egyptian Condition as the final regulatory hurdle.

Genel continues to expect the scheme to become effective during the fourth quarter of 2026.

The bidder is funding the cash consideration through existing resources and new debt, having increased its bridge facility to US$160 million.