A consortium led by private equity firms KKR and Energy Capital Partners is in advanced discussions to acquire Irish energy distributor DCC in a deal that could value the company at more than £5 billion ($6.7 billion), according to a Reuters report citing Sky News.
The latest proposal reportedly values DCC at roughly £65 per share, representing a significant increase from the consortium’s earlier £58-per-share offer that was rejected by the company in April. At the time, DCC’s board unanimously concluded that the bid, which valued the company at approximately £4.95 billion, failed to reflect the value of the business and its long-term prospects.
The revised approach suggests the buyers remain convinced that DCC’s energy platform is worth pursuing despite the company’s rejection of the initial offer.
DCC operates one of Europe’s largest energy distribution businesses, supplying LPG, fuel oils and other energy products across multiple international markets. The company has spent recent years reshaping its portfolio through acquisitions and divestments, with an eye to increasing its focus on energy and related infrastructure.
Shares in DCC rose nearly 3% following reports of the improved proposal, trading around £61.75. The stock has gained more than 11% since the original takeover approach became public in April, reflecting growing investor expectations that a higher bid could emerge.
The consortium faces a deadline under UK takeover rules to either submit a formal offer or walk away from the pursuit for six months.
Neither DCC nor the prospective buyers have publicly commented on the latest reported valuation.
If completed, the transaction would rank among the largest energy-related acquisitions in Europe this year, supporting a trend that sees increasing private equity interest in fuel distribution, energy logistics and infrastructure assets as uncertainty consumes energy markets.
By Michael Kern for Oilprice.com
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