Genel agrees recommended £271m acquisition of Capricorn Energy

(Sharecast News) - Genel Energy announced on Thursday that it has agreed a recommended cash acquisition of Capricorn Energy in a deal valuing the Edinburgh-based company at about $360m on a fully diluted basis, or £271m. Under the terms of the scheme, Capricorn shareholders will receive $4.74 per share, comprising $3.75 in cash and a special dividend of $0.99 expected to be declared before completion.

The total value is equivalent to 357p per share, representing a 34% premium to Capricorn's undisturbed closing price of 266p on 10 March and a 48% premium to the three-month volume-weighted average price.

Capricorn chief executive Randy Neely said the deal "crystallises the value created by Capricorn while providing shareholders with a clear and efficient exit", while Genel chief executive Paul Weir described it as "a landmark transaction" that would diversify Genel's portfolio and begin its role "as a partner in Egypt's energy future".

At 0927 BST, shares in Genel Energy were up 3.09% at 53.4p, while those in Capricorn Energy were ahead 18.75% at 342p.

Reporting by Josh White for Sharecast.com.

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