DNO launches $396m takeover bid for Capricorn Energy

Capricorn Energy, an Edinburgh-based oil and gas explorer, has changed its recommendation to favor a $396 million (£292 million) takeover bid from the Norwegian company DNO. This new offer surpasses a previous agreement with Genel Energy by approximately $36 million.

DNO’s proposal offers $5.214 per share, consisting of $4.224 in cash and a $0.99 special dividend. This represents a 45% premium to Capricorn’s undisturbed price in March and is roughly 10% higher than the Genel offer. The acquisition would provide DNO with a strategic entry into Egypt, establishing it as a third core operating region alongside its existing assets in the North Sea and the Kurdistan Region of Iraq.

While the Capricorn board has switched its recommendation, the Genel offer has not officially lapsed. Capricorn has stated it will update shareholders on further developments. Additionally, Capricorn director Randy Neely remains bound by an irrevocable undertaking regarding the Genel offer, which will require him to vote against the acquisition at upcoming meetings unless his obligations lapse.