Norwegian oil and gas operator DNO has agreed to acquire the entire issued and to-be-issued share capital of UK-based Capricorn Energy in a deal valued at $396m (Nkr3.69bn).
The proposed transaction will be completed through a Scottish scheme of arrangement under Part 26 of the Companies Act.
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DNO will pay $5.214 per Capricorn share, comprising $4.224 in cash and a $0.99 special dividend to be declared by Capricorn before the deal takes effect.
The offer exceeds Genel Energy’s July bid of $4.74 per share, valuing the company at $360m.
Capricorn’s board has withdrawn its recommendation for the rival proposal and intends to urge shareholders to support DNO’s higher offer.
According to Capricorn, the proposed price represents a premium of 45% over the closing price per share on 10 March 2026 and 60% over the three-month average prior to the offer period.
Capricorn CEO Randy Neely said: “We are pleased to recommend this higher all-cash offer from DNO. It maximises the value created by the Capricorn team and importantly increases the return for shareholders.”
If completed, the acquisition will result in DNO entering the Egyptian market, adding to its existing operations in the North Sea and the Kurdistan region of Iraq.
DNO said it plans to strengthen its presence in Egypt through new investments and additional acquisitions, citing the country’s supportive regulatory environment for oil and gas operations.
DNO reported average net production of 136,915 barrels of oil equivalent per day in 2025, with proven and probable net reserves of 390.1 million barrels of oil equivalent.
The addition of Capricorn’s Egyptian assets and workforce would increase DNO’s pro forma reserves and broaden its geographical footprint.
The completion of the acquisition is conditional on approval by Capricorn shareholders and relevant authorities including the Egyptian General Petroleum Corporation.
The scheme document detailing the process is expected to be published within 28 days, with deal completion anticipated in late 2026 or early 2027.
DNO executive chairman Bijan Mossavar-Rahmani said: “Today marks an exciting chapter in DNO’s 55-year growth story as we move to acquire a high-quality portfolio of oil and gas assets in Egypt.
“Capricorn will add another business with scale, cash flow and growability to our existing operations in Kurdistan and the North Sea. With three core areas, each with its own geology, geography and geopolitics, DNO will be a more diversified and stronger company.
“DNO has ambitious plans to build a significant Egyptian business through investment in Capricorn’s portfolio, participation in new licence rounds and additional acquisitions. DNO’s technical capability, financial strength and can-do attitude will fuel that growth.”
In March 2026, DNO agreed to a non-cash asset swap with Equinor Energy involving several oil and gas interests on the Norwegian Continental Shelf.
