DCC Energy (DCC.L) directors agreed to the terms of a 5.75 billion-pound-sterling takeover proposal from Dragon Bidco, a company co-owned by Bridgepoint Group's (BPT.L) infrastructure investment platform Energy Capital Partners Management and investment giant KKR.
The offer of 67.9722 pounds per share comprises a cash consideration of 65.25 pounds, a final dividend of 1.4722 pounds, and up to 1.25 pounds of additional cash payment depending on the planned divestment of the Nexora business, according to a Monday filing.
Directors of the London-listed multi-energy sales and distribution company unanimously recommended the proposal, deeming the terms fair and reasonable and in the best interest of shareholders.
"Whilst the DCC Energy Board remains confident in the energy strategy and associated 2030 Ambition announced in 2022, the Board believes the Consortium's offer represents a compelling opportunity for shareholders to crystallise value in cash at an attractive premium to DCC Energy's historical trading price," said DCC Energy Chair Mark Breuer. "We are confident that the Consortium will be strong stewards of DCC Energy's 50-year heritage and support the business during its next phase of growth."
The parties expect to wrap up the transaction no later than July 31, 2027, subject to the approval of shareholders and relevant authorities. Shareholders of the target will meet as soon as September 2026 to consider the deal.
In early morning trading, DCC Energy rose more than 1% in London, while Bridgepoint increased 3%.
