Capricorn Backs Genel Bid
Genel Energy wins Capricorn board backing with an increased $436 million bid.
Anonymous
Key Points
1
The offer’s sterling equivalent is 434 pence per share, representing an approximately 80% premium to Capricorn’s volume-weighted average share price over the three months ending on the undisturbed date.
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The acquisition is structured as a Scottish scheme of arrangement under Part 26 of the Companies Act 2006.
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Capricorn’s directors, advised by Canaccord Genuity, plan to adjourn the shareholder meetings called for the competing DNO transaction.
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Genel’s portfolio includes producing assets in Iraq’s Kurdistan Region and exploration licences in Oman and Somaliland.
Genel Energy has won Capricorn Energy's board backing with a $436 million bid that tops rival DNO's offer by roughly 10%. The deal values Capricorn at $5.74 per share — made up of $4.75 in cash plus a $0.99 special dividend, according to Market Screener. This represents a 63% premium to Capricorn's stock price before bidding started.
Capricorn's board has dropped its support for DNO and now recommends Genel's proposal. Genel has already locked in commitments for about 39% of Capricorn's shares, Market Screener reported. The deal is expected to close in the fourth quarter of 2026, pending a remaining Egyptian regulatory approval.
How Genel Beat Out DNO in Bidding War
Capricorn's board initially backed DNO's takeover offer but switched sides when Genel raised its bid. The new offer of $5.74 per share beats DNO by about 10%, making it the higher choice for shareholders. In sterling terms, that's 434 pence per share, according to Market Screener. The deal includes both immediate cash and a planned dividend payout.
Strong Shareholder Support Already in Place
Genel has secured binding commitments from investors holding roughly 39% of Capricorn's shares. This gives the bidder significant momentum heading into final approval votes. Market Screener noted that Capricorn's board is planning to adjourn shareholder meetings previously called to vote on the DNO deal. Canaccord Genuity is advising Capricorn's directors on the transaction.
What Genel Gets From Capricorn Acquisition
Genel Energy is a smaller oil and gas operator with producing assets in Iraq's Kurdistan Region. The company also holds exploration licenses in Oman and Somaliland. By acquiring Capricorn, Genel would expand its portfolio and scale of operations. The deal is structured as a Scottish scheme of arrangement under UK company law, Market Screener reported.
Final Hurdles Before Deal Closes in Late 2026
The acquisition still needs Egyptian regulatory approval before it can be completed. Genel and Capricorn expect the deal to wrap up in the fourth quarter of 2026. The timeline gives regulators time to review the transaction while both companies prepare for integration. Market Screener confirmed that board approval and shareholder votes remain on track following Capricorn's switch in recommendation.
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