Capricorn Energy Backs DNO's $396 Million Bid Over Genel

M&A · Partnership

โดย Oilprice.com·

Summary · why it matters

Norwegian oil producer DNO has agreed a recommended cash acquisition of Capricorn Energy valued at approximately $396 million, outbidding Genel Energy for the UK-listed producer and giving DNO an entry into Egypt's upstream sector. Under the proposed transaction, Capricorn shareholders would receive an aggregate $5.214 per share, consisting of $4.224 per share in cash from DNO's acquisition vehicle and an expected $0.99-per-share special dividend to be paid by Capricorn, provided the necessary conditions are met. The total value represents roughly a 10% premium to the $4.74-per-share acquisition value offered by Genel, which had valued Capricorn at approximately $360 million. Capricorn's board now intends to unanimously recommend the DNO transaction, despite shareholders having already approved the Genel scheme on August 18, though that deal had not completed and remained subject to further conditions. For DNO, the acquisition would establish Egypt as a third core operating region alongside the North Sea and the Kurdistan Region of Iraq, with Capricorn's assets concentrated in Egypt's Western Desert, where the company reported working-interest production of 20,024 barrels of oil equivalent per day in 2025 and $134 million of Egyptian oil and gas revenue. The transaction remains conditional on Capricorn shareholder approval, court approval, and consent from the Egyptian General Petroleum Corporation, with the scheme expected to become effective during the fourth quarter of 2026 or first quarter of 2027. The takeover contest also comes while DNO is separately considering an acquisition of Genel itself, having approached Genel with a possible offer after making an initial proposal on July 28, and has until September 4 to announce a firm offer for Genel or state that it does not intend to proceed.