A major energy business traded on the London Stock Exchange has accepted a takeover proposal from American private equity groups KKR and Energy Capital Partners valued at approximately £5.7bn. The Dublin-based DCC Energy company’s board of directors recommended the offer despite significant objections from key stakeholders.
The deal contributes to a broader trend of major corporations leaving public markets. Other recent transactions involving large UK-listed companies include the privatization of facilities management firm Mitie, food ingredients specialist Tate & Lyle, and the parent company of William Hill gambling operations, Evoke. Budget airline easyJet is also reportedly facing a potential takeover approach of similar financial magnitude.
The proposed acquisition has drawn sharp criticism from DCC’s founder Jim Flavin, who maintains a substantial ownership stake alongside major institutional investors Aviva and Fidelity. Flavin expressed strong objection to the board’s decision, stating he was surprised by their backing of the transaction. He contends the valuation fails to reflect the company’s potential after implementing a strategic shift in 2022 that targeted doubling operating profits to £830m by 2030.
The private equity consortium offered £65.25 per share in cash, representing a 36% premium to the average trading price during the three months before negotiations became public. The bidders also committed to providing an additional £1.25 per share contingent on achieving a specified sale price for DCC’s technology division, Nexora. Despite these terms, the proposal has faced investor resistance. Aviva Investors’ UK equity leadership questioned the adequacy of the increased offer, indicating the firm would not support the transaction if formally recommended. DCC’s share price showed minimal movement following the announcement, closing slightly below the offer level.
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