DCC Energy, one of the largest energy companies listed on the London Stock Exchange, has agreed to a takeover valued at £5.7bn by a consortium of US private equity groups KKR and Energy Capital Partners. The Dublin-based firm’s board of directors recommended accepting the offer despite significant opposition from major stakeholders in the company.
The transaction requires the private equity buyers to pay £65.25 per share in cash, representing a 36% premium over the company’s average share price during the three months before takeover discussions became public. An additional £1.25 per share will be provided contingent upon the successful sale of DCC’s technology subsidiary, Nexora, reaching a specified valuation threshold. The board characterized the proposal as providing shareholders with a secure opportunity to realize value in immediate cash payments.
The proposed acquisition has drawn criticism from several prominent investors, including DCC founder Jim Flavin, who holds a substantial stake in the company. Flavin expressed surprise at the board’s endorsement, describing the offer price as grossly inadequate given the company’s 2022 strategic update that outlined plans to double operating profits to £830m by 2030. Major pension fund investors Aviva and Fidelity, both significant shareholders, have also voiced opposition to the deal, with Aviva indicating it would not support the transaction at the proposed valuation.
The takeover represents part of a broader pattern of FTSE 100-listed companies transitioning from public markets to private ownership. Recent similar transactions have included agreements affecting Mitie, Tate & Lyle, and Evoke, the owner of William Hill, while budget airline easyJet has been subject to a potential offer of comparable value. Following the board’s recommendation announcement, DCC’s share price moved marginally higher, closing just under 1% up at £63.40.
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