Genel Energy (LSE:GENL), through its subsidiary Genel Energy No.9 Limited, has reached agreement on a recommended all-cash acquisition of Capricorn Energy PLC (LSE:CNE), valuing the oil and gas producer at approximately $360 million.
The offer values Capricorn at 357p per share, including its proposed special dividend, representing a premium of around 34% to the company’s undisturbed share price. Shareholders will receive the principal cash consideration in U.S. dollars, although a foreign exchange facility will allow investors to elect to receive payment in sterling if they choose.
Deal to proceed through Scottish scheme of arrangement
The acquisition will be implemented through a Scottish court-sanctioned scheme of arrangement and remains subject to shareholder approval and a number of regulatory conditions.
Among the key approvals required is consent from the Egyptian authorities. Genel and its acquisition vehicle have already begun discussions with both the Egyptian Government and the Egyptian General Petroleum Corporation (EGPC), reflecting the strategic importance of Capricorn’s Egyptian operations to the enlarged business.
Management views support from Egyptian stakeholders as a key factor in completing the transaction and unlocking the anticipated value of the acquisition.
Acquisition strengthens Egyptian growth strategy
The proposed takeover would significantly expand Genel Energy’s asset portfolio, particularly in Egypt, reinforcing its strategic focus on the country’s upstream oil and gas sector.
The company’s investment outlook is supported by improving profitability, healthy cash generation and low leverage, while technical indicators remain favourable with the shares trading above key long-term moving averages. However, investors continue to monitor operational risks, including revenue volatility, outstanding receivables from EGPC, concession ratification requirements and planned operational turnarounds during 2026.
More about Capricorn Energy PLC
Capricorn Energy PLC is an international oil and gas exploration and production company with operations primarily focused on Egypt. Its revenues and cash flows are largely denominated in U.S. dollars, reflecting the international nature of its upstream energy portfolio.
The company works closely with Egyptian authorities and state-owned entities, including the Egyptian General Petroleum Corporation (EGPC), making government approvals and regulatory relationships central to the ongoing development of its assets.
More about Genel Energy PLC
Genel Energy PLC is an independent oil and gas company focused on exploration, development and production across the Middle East and North Africa. Through its wholly owned acquisition vehicle, Genel Energy No.9 Limited, the company is seeking to expand its portfolio by acquiring Capricorn Energy and strengthening its position in Egypt’s energy sector.
The proposed acquisition aligns with Genel’s strategy of building a diversified portfolio of producing assets while maintaining long-term partnerships with host governments and industry stakeholders.
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