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KKR and Energy Capital Partners are offering £65.25 a share upfront with potential for up to £1.25 more
KKR and Energy Capital Partners are offering £65.25 a share upfront with potential for up to £1.25 moreEnergy has secured the backing of the world’s two most influential investor advisory firms for its planned sale to twoprivate equity firms in a deal worth up to £5.73 billion , in advance of a crucial shareholder vote in less than two weeks.
said that the offer from KKR and Energy Capital Partners “provides a reasonable premium and cash certainty” after the stock market failed to give DCC credit for having largely completed a strategic transformation.
“While the stand-alone strategy may deliver additional value over time, doing so would require successful execution and meaningful change in market perception,” ISS said. “On balance, therefore, the offer provides a credible opportunity for shareholders to crystallise value today while avoiding these uncertainties.
”noted that while a number of major investors – including Fidelity International and DCC’s founder, Jim Flavin – have publicly argued that the bid should be rejected, it was reasonable for investors to conclude that the offer “represents an attractive option”. Odds tighten on CEO Rothwell’s bid for Irish Ferries owner It said it should be seen against the fact that DCC “has been unable to drive material increases in trading value, secure a revised valuation or generate any competing offers”.
DCC, led by chief executive Donal Murphy, revealed in late April that it had received a €58-a-share offer from KKR and Energy Capital partners following years of underperformance by the stock relative to target prices set by analysts. While the initial proposal was rejected outright, DCC finally agreed in late July – after back-and-forth in the intervening months – to sell itself to the consortium for a £65.25-a-share upfront payment and the prospect of £1.25 extra per share if the Irish company’s tech division achieves at least $800 million in a sale.
The takeover deal values the upfront cash offer at a 21.3 per cent premium to DCC’s closing share price in London – where it is listed – on April 28th, before it emerged that KKR and Energy Capital were circling the group. DCC, whose businesses once spanned Robert Roberts tea and coffee to waste management, decided in late 2024 to abandon the remaining elements of its conglomerate roots to focus on energy.
It subsequently sold its healthcare division and part of its tech business, with the remainder of that division currently on the market. Murphy told The Irish Times on the day of the takeover deal announcement that while the board “absolutely believes” the remaining energy division is on course to double its operating profit to £830 million between 2022 and 2030, the target is “not without risk” when weighted against an uncertain geopolitical and macroeconomic backdrop as well as the need for the group to invest £1 billion-£1.2 billion.
DCC said in a statement on Wednesday that the bid consortium – using a corporate vehicle called Dragon Bidco – had confirmed that its offer “is final and will not be increased”.
“Bidco considers the financial terms of the acquisition to reflect the full and fair value for DCC Energy,” it said, adding that the DCC Energy directors have unanimously recommended that shareholders vote in favour of the acquisition at the extraordinary general meeting on September 18th. Willow Plant Sensor review: Are your thumbs less green and more grim reaper?
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