Shares in Capricorn Energy (LSE:CNE) climbed as much as 20% on Thursday, reaching an intraday high of 353p, their highest level in a decade, after Genel Energy (LSE:GENL) agreed to acquire the company in a recommended all-cash transaction valued at approximately $360 million.
Offer values Capricorn at 357p per share
The acquisition will be made through Genel Energy No.9 Limited, which will pay Capricorn shareholders total consideration of $4.74 per share. This consists of a $3.75 per share cash payment alongside a $0.99 special dividend that is expected to be declared before completion.
The transaction values Capricorn’s issued and to-be-issued share capital at around $360 million, equivalent to approximately £271 million.
Based on the sterling equivalent of 357p per share, the offer represents a premium of around 34% to Capricorn’s closing share price of 266p on 10 March 2026, the day before the offer period began. It also represents a 48% premium to the company’s three-month volume-weighted average share price of 241p over the same period.
Combined group to strengthen Middle East and North Africa portfolio
Capricorn operates onshore oil development and production assets in Egypt’s Western Desert, while Genel produces oil from the Tawke licence in the Kurdistan Region of Iraq.
Genel said the acquisition will create “a larger, more diversified MENA-focused exploration & production company.”
Following completion, the combined business is expected to hold pro-forma 2P reserves of 117 million barrels of oil equivalent and produce approximately 41,003 barrels of oil per day, with production split broadly equally between operations in Egypt and Kurdistan.
Capricorn chief executive Randy Neely said, “Since my appointment three years ago, the team has delivered strongly against our strategic priorities — returning approximately US$600 million to shareholders, reducing costs, and maximising value from our Egyptian asset base through the recently signed merged concession, establishing a sustainable long-term business. However, Capricorn requires greater scale to materially improve trading liquidity. We believe the transaction with Genel crystallises the value created by Capricorn while providing shareholders with a clear and efficient exit.”
Genel chief executive Paul Weir described the acquisition as “a landmark transaction to acquire a leading oil and gas portfolio in Egypt” that “reshapes our company’s growth trajectory.”
Shareholder approvals and Egyptian consent still required
The proposed acquisition will be implemented through a scheme of arrangement under the Companies Act 2006 and remains subject to approval by Capricorn shareholders.
Genel and its acquisition vehicle are also seeking consent from the Egyptian General Petroleum Corporation (EGPC), a condition that the companies highlighted as an important requirement for completing the transaction.
Bidco has already secured irrevocable undertakings from shareholders representing approximately 39.3% of Capricorn’s issued share capital, including Palliser Capital (UK) Ltd, Newtyn Management, Kite Lake Capital Management and Madison Avenue Partners.
The companies expect the transaction to become effective during the second half of 2026, with a long-stop date of 2 January 2027.
More about Capricorn Energy
Capricorn Energy PLC is an international oil and gas exploration and production company with operations centred on Egypt’s Western Desert. The company generates the majority of its cash flow from Egyptian upstream assets and has focused on strengthening its production base while returning capital to shareholders.
More about Genel Energy
Genel Energy PLC is an independent oil and gas producer with operations across the Middle East and North Africa. The company produces oil from the Tawke licence in the Kurdistan Region of Iraq and is seeking to expand its regional footprint through the acquisition of Capricorn Energy, strengthening its presence in Egypt.
Leave a Reply