UK Takeover Panel Extends Deadline for DCC Takeover Bid by KKR, Energy Capital
Details and Implications of the DCC Takeover Bid Extension
Background of the Takeover Bid
July 8 - The UK Takeover Panel on Wednesday further extended until July 15 the deadline for a consortium of KKR and Energy Capital Partners to make a firm offer for DCC, the Irish energy distributor said.
The extension comes over a month after the London-listed company announced its backing to the U.S. investment firms' sweetened £5.7 billion ($7.62 billion) proposal, when the deadline was pushed to July 8.
Revised Proposal Details
• The revised proposal comprises £65.25 in cash and DCC's proposed final dividend of 147.22 pence per share.
Previous Offers and Shareholder Reactions
Initial Proposal and Rejection
• DCC earlier rejected the consortium's £4.95-billion proposal, saying it undervalued the company.
Shareholder Opposition to Revised Bid
• Financial Times reported earlier this month that some of DCC's largest shareholders, including Fidelity International, Aviva Investors and Ninety One, opposed the revised bid, saying the offer undervalued the company.
DCC's Strategic Focus and Recent Moves
• DCC has been simplifying operations and sharpening focus on its core energy business by stepping up acquisitions in Europe's liquid gas markets and divesting non-core units such as healthcare and technology.
Additional Information
($1 = 0.7485 pounds)
(Reporting by Sri Hari N S in Bengaluru; Editing by Joyjeet Das)
