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UK's Capricorn Energy agrees to revised terms of $396 million takeover offer from DNO (Sept. 17) - Finance news and analysis from Global Banking & Finance Review
Finance

UK's Capricorn Energy agrees to revised terms of $396 million takeover offer from DNO (Sept. 17)

Published by Global Banking & Finance Review

Posted on September 24, 2026

2 min read

· Last updated: September 24, 2026

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Capricorn Energy Accepts $396 Million Revised Takeover Bid from DNO

Details of the Revised Takeover Offer

(Corrects second bullet in September 17 story to say Genel Energy is considering its options for Capricorn bid, not dropped out of takeover race, after DNO deal)

Overview of the Agreement

Sept 17 (Reuters) - UK-listed Capricorn Energy on Thursday agreed to revised terms of a $396 million takeover offer from Norwegian oil firm DNO.

Key Offer Terms

Revised Financial Terms

• DNO said it will pay $5.214 in cash for each Capricorn share, compared to its earlier proposal of $4.224 in cash and $0.99 in dividend payouts.

Response from Competing Bidders

• Capricorn had agreed to DNO's proposal earlier in September, prompting its other bidder Genel Energy to consider its options.

Background of Bidding Process

• DNO, which is an operating partner of Genel's in Iraq's Kurdistan region, had attempted to buy out the latter unsuccessfully before competing with it to takeover Capricorn.

Industry Context

Trends in Middle East Oil Sector

• Dealmaking among oil companies operating in the Middle East is gathering pace as a surge in oil prices after the onset of the Iran war has enabled some energy firms focused on the region to pursue mergers and acquisitions.

Reporting Credits

(Reporting by Prerna Bedi in Bengaluru; Editing by Sonia Cheema)

Key Takeaways

  • DNO’s revised offer now delivers US$5.214 in pure cash per Capricorn share—up from the previous US$4.224 cash plus US$0.99 dividend structure—enhancing dealcertainty for shareholders (tradingview.com).
  • The new valuation implies an approximate US$396 million total bid, about US$36 million higher than Genel Energy’s previous offer on a constant‑currency basis (tradingview.com).
  • Capricorn’s board had previously accepted DNO’s earlier proposal, which prompted Genel Energy to reassess its competing bid; the revised offer now positions DNO as the leading contender (marketscreener.com).
  • Following the announcement, Capricorn shares rose by about 1.6%, reflecting investor confidence in the revised terms (investing.com).
  • The move underscores accelerating M&A activity in the oil sector, as elevated oil prices post‑Iran war facilitate strategic consolidation among Middle East–focused energy firms (marketscreener.com).

References

Frequently Asked Questions

What are the revised terms of DNO's takeover offer for Capricorn Energy?
DNO will pay $5.214 in cash per Capricorn share, replacing its previous mix of cash and dividend payouts.
How did Genel Energy respond to DNO's new offer for Capricorn Energy?
Genel Energy is considering its options for the Capricorn bid after the revised offer from DNO.
What prompted the increased merger activity among oil companies in the Middle East?
Rising oil prices after the onset of the Iran war have enabled regional energy companies to pursue more mergers and acquisitions.
What is the relationship between DNO, Capricorn Energy, and Genel Energy?
DNO is an operating partner of Genel in Iraq's Kurdistan region and is competing with Genel to acquire Capricorn Energy.

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