Energy firm DCC has announced it would be 'minded' to support a £5.7 billion enhanced takeover proposal from a consortium of investors, marking another significant withdrawal from the London stock market.
Revised Proposal Details
London-listed DCC, which is headquartered in Dublin, Ireland, revealed it had received an improved offer from private equity giant KKR and Energy Capital Partners. The proposal is valued at £65.25 per share in cash, supplemented by 147.22p in dividends, bringing the total to £66.72 per share.
This revised offer substantially exceeds the initial £58 per share, or £4.95 billion, approach that DCC rejected in late April. Following the announcement, DCC's shares rose an additional 3%, having already climbed approximately 12% since the earlier approach.
Board Recommendation
DCC stated: 'Having carefully evaluated the revised proposal together with its advisers, the board of DCC considers that the financial terms of the revised proposal are at a level which the board of DCC would be minded to recommend to DCC shareholders.'
Under takeover regulations, the bidders now have until 5pm on July 8 to either announce a firm offer for DCC or withdraw.
Market Context
The potential acquisition of DCC adds to a growing trend of FTSE companies being acquired and taken private in recent months. Notable examples include:
- Sweeteners and ingredients giant Tate & Lyle agreeing to a £2.7 billion takeover by US rival Ingredion, ending over 165 years as a British-owned company.
- William Hill owner Evoke accepting a £243.1 million takeover by Greek gambling firm Bally's Intralot.
- Laboratory testing company Intertek's board giving initial backing to a £9.4 billion proposal from Swedish firm EQT.
- FTSE 100 insurance firm Beazley agreeing to a deal in March to be bought by Swiss firm Zurich for £8.1 billion.
- Asset manager Schroders set to be taken private via a £9.9 billion takeover by US investment company Nuveen.
The deal has raised concerns about potential job cuts, although no specific details have been disclosed.
