DCC Energy, a major energy business listed on the London Stock Exchange, has accepted a takeover proposal from US private equity groups KKR and Energy Capital Partners valuing the company at £5.7bn. The Dublin-based energy supplier’s board of directors recommended the offer to shareholders, though the deal has faced significant opposition from major stakeholders.
The transaction represents a £65.25 per share cash offer, with an additional £1.25 per share conditional payment contingent on the sale of DCC’s technology division, Nexora, reaching certain price targets. The initial cash offer stands 36% higher than the company’s average share price during the three-month period before takeover discussions became public. DCC’s board characterized the bid as “a compelling and certain opportunity” for shareholders to secure immediate cash returns on their investments.
The takeover has drawn criticism from Jim Flavin, the company’s founder and a significant shareholder, who expressed shock at the board’s recommendation. Flavin contends the offer substantially undervalues the business, particularly given DCC’s 2022 strategic repositioning that outlined plans to double operating profits to £830m by 2030. Major institutional investors including pension fund Aviva and asset manager Fidelity have also registered opposition, with Aviva Investors stating the bid would constitute “a bad outcome for shareholders.”
The proposed acquisition adds to a broader trend of UK-listed companies transitioning to private ownership through leveraged buyouts. Recent similar transactions have included Mitie, Tate & Lyle, and Evoke, the owner of William Hill, while budget airline easyJet is reportedly considering a comparable offer. DCC shares responded modestly to the announcement, edging up marginally to £63.40.
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