DCC Energy, a major energy firm listed on the London Stock Exchange, has accepted a takeover proposal from US private equity groups KKR and Energy Capital Partners valued at £5.7bn. The Dublin-based company’s board endorsed the offer, which includes a base price of £65.25 per share in cash plus a potential £1.25 per share additional payment contingent on the successful sale of the company’s Nexora technology division at a specified valuation.
The transaction represents part of a broader trend of major corporations leaving UK public markets. Recent comparable agreements have included the privatization of Mitie, Tate & Lyle, and Evoke, the owner of William Hill, while budget airline easyJet faces a potential offer of similar magnitude.
The agreement has sparked considerable controversy among significant stakeholders. Founder Jim Flavin, who maintains substantial shareholdings in the company, publicly criticized the board’s decision, stating he was “astounded” by their recommendation. Flavin contended that the offer significantly underestimates the company’s value, particularly given the firm’s 2022 strategic restructuring that established an objective to double operating profits to £830m by 2030. Major institutional investors, including pension firms Aviva and Fidelity, have also expressed reservations about the proposal.
Aviva Investors stated that the takeover would constitute an unfavorable outcome for shareholders and indicated it would oppose the transaction if formally recommended by the board. Despite the base offer representing a 36% premium above the company’s three-month average share price preceding the announcement of takeover discussions, opposition from key shareholders has persisted. DCC shares increased marginally to £63.40 following the announcement, reflecting the market’s cautious reception to the proposed transaction.
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