Genel Energy raises Capricorn bid to $436 million, beats Norway's DNO

By Reuters News

Sept 25 (Reuters) - Britain's Genel Energy GENL.L outbid rival DNO DNO.OL for Capricorn Energy CNE.L on Friday, raising its cash offer to $436 million and potentially ending a months-long bidding war that has seen Capricorn's board switch allegiances twice.


Here are some details:

  • Capricorn has become a prized target for energy firms seeking a foothold in Egypt's upstream sector, with its Western Desert assets attracting competing bids from the two rivals weeks apart.

  • Genel won Capricorn's board backing with a $360 million bid in July, before DNO gate-crashed the process with a higher $396 million offer earlier this month.

  • Under the revised terms, Capricorn shareholders will receive about $5.74 apiece, comprising $4.75 in cash and a $0.99 special dividend, a 10% premium to DNO's rival offer.

  • Capricorn's board withdrew its recommendation for DNO's offer and now backs Genel's bid, saying it provides shareholders with "superior value, certainty and deliverability".

  • DNO did not immediately respond to a Reuters request for comment.

  • Genel has also secured commitments from key shareholders, including Palliser Capital, Newtyn Management, Kite Lake Capital and Madison Avenue Partners, locking up about 39.1% of Capricorn's issued share capital.

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