Genel Energy, via its wholly owned indirect subsidiary Genel Energy No.9 (Bidco), has increased its recommended cash offer for UK-listed Capricorn Energy to $436m (£328.83m), surpassing a competing bid from DNO.
The increased bid has received support from Capricorn’s board.
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It arrives after Norwegian oil company DNO raised its own offer for Capricorn earlier this month to $396m (Nkr3.76bn), prompting renewed competition from Genel.
Under the terms of Genel’s revised offer, Capricorn shareholders would receive $5.74 per share, comprising $4.75 in cash alongside a $0.99 special dividend intended to be declared before the scheme becomes effective.
The revised price represents a 10% premium over the $5.214-per-share offer submitted by DNO on 17 September 2026.
It also represents a 63% premium to Capricorn’s closing price of 266p on 10 March 2026, the day before the offer period began.
Capricorn’s directors withdrew their previous recommendation for the DNO proposal with immediate effect.
The board stated that Genel’s enhanced offer provides shareholders with “superior value, certainty and deliverability”. It also confirmed plans to adjourn shareholder meetings that had been convened for 16 October 2026 to consider DNO’s bid.
Genel had earlier secured board support with a $360m offer in July 2026, which received overwhelming backing from more than 99% of voting Capricorn shares at meetings in August.
To support the transaction, Genel has secured revised irrevocable undertakings from shareholders including Palliser Capital, Newtyn Management, Kite Lake Capital Management and Madison Avenue Partners.
Together with commitments from an executive director, these agreements cover nearly 27.91 million shares, representing approximately 39.1% of Capricorn’s issued share capital.
The acquisition remains subject to a final Egyptian regulatory condition after receiving clearance from the Egyptian Competition Authority on 7 September 2026.
Genel intends to fund the acquisition using existing cash and new debt financing, with completion expected in the fourth quarter of 2026.
Bidco will provide the cash consideration, fees and expenses using existing cash resources and new debt financing.
Capricorn’s core operations are in Egypt’s Western Desert, where it holds onshore development and production assets.
