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Finance

Genel Energy raises Capricorn offer to $436 million, outbidding Norway's DNO

Published by Global Banking & Finance Review

Posted on September 25, 2026

2 min read

· Last updated: September 25, 2026

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Genel Energy Raises Capricorn Offer to $436 Million, Overtaking DNO

Genel Energy's Increased Bid and Market Impact

By Yamini Kalia

Sept 25 (Reuters) - Britain's Genel Energy raised its cash offer for Capricorn Energy to $436 million on Friday, topping a rival offer from DNO and re-securing the backing of Capricorn's board after a months-long bidding war.

Share Price Movements Following the Announcement

Capricorn shares were up 12.2% at a more than 15-year high of 443 pence by 0838 GMT, while Genel's shares fell 2.1%.

Background: Capricorn as a Strategic Acquisition Target

Interest in Egypt's Upstream Sector

• Capricorn has become a prized target for energy firms seeking a foothold in Egypt's upstream sector, with its Western Desert assets attracting competing bids from the two rivals weeks apart.

Timeline of Bids and Board Support

• Genel secured the backing of Capricorn's board with a $360 million bid in July, before DNO offered $396 million earlier this month.

Details of the Revised Offer

Shareholder Benefits and Premium

• Under the revised terms of Genel's bid, Capricorn shareholders will receive about $5.74 per share, comprising $4.75 in cash and a $0.99 special dividend, a 10% premium to DNO's offer.

Analyst Insights on the Deal

• Zeus Capital analyst Daniel Slater said that Capricorn would give Genel a much more diversified production base, larger drilling program and sources of cash flow.

Board Recommendation and Rival Response

Capricorn Board's Position

• Capricorn's board withdrew its recommendation for DNO's offer to again back Genel's bid, saying it provides shareholders with "superior value, certainty and deliverability".

DNO's Reaction

• DNO declined to comment when asked if the company would raise its offer.

Shareholder Commitments and Next Steps

Support from Major Shareholders

• Genel has secured commitments from shareholders including Palliser Capital, Newtyn Management, Kite Lake Capital and Madison Avenue Partners, locking up about 39% of Capricorn's issued share capital.

Reporting and Editorial Credits

(Reporting by Yamini Kalia in Bengaluru; Editing by Sherry Jacob-Phillips, Kirsten Donovan)

Key Takeaways

  • Genel’s improved offer of US$5.74 per share (US$4.75 cash + US$0.99 special dividend) values Capricorn at ~US$436 million, ~10% above DNO’s revised US$396 million offer (tradingview.com)
  • Capricorn’s board rescinded its recommendation for DNO and endorsed Genel’s bid again, citing superior value, certainty and deliverability (tradingview.com)
  • Genel has secured irrevocable undertakings from shareholders controlling ~39% of Capricorn’s stock, strengthening its position amid the bidding war (tradingview.com)

References

Frequently Asked Questions

What is the value of Genel Energy's latest offer for Capricorn Energy?
Genel Energy has increased its bid to $436 million for Capricorn Energy.
How does Genel's offer compare to DNO's bid for Capricorn?
Genel's revised offer is 10% higher than DNO's $396 million bid for Capricorn.
What do Capricorn shareholders receive in the new Genel offer?
Capricorn shareholders will receive $5.74 per share, including $4.75 in cash and a $0.99 special dividend.
Why is Capricorn Energy an attractive target for bidders?
Capricorn's Western Desert assets in Egypt make it a prized target for energy companies seeking upstream expansion.
Did Capricorn's board support Genel Energy's latest bid?
Yes, after withdrawing endorsement for DNO, the Capricorn board now backs Genel's higher offer.

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