LONDON: DCC Energy PLC, the FTSE 100 multi-energy distributor, has agreed to a recommended £5.75 billion acquisition by a consortium led by Kohlberg Kravis Roberts & Co. L.P. and Energy Capital Partners Management, LP, the company announced .
The acquisition, to be implemented through a scheme of arrangement, offers DCC Energy shareholders a total value of up to 6,797.22 pence per share. This comprises a base cash consideration of 6,525 pence, the final dividend of 147.22 pence paid in July, and a potential additional payment of up to 125 pence tied to the sale of DCC’s Nexora technology business, a statement said.
The total offer, valued at approximately £5.75 billion, represents a 24% premium to DCC Energy’s undisturbed closing price of 5,380 pence and exceeds its 52-week high at the time of the initial approach . The bid also offers a 33% premium to the company’s three-month volume-weighted average price.
DCC Energy has undergone significant strategic restructuring since 2022, simplifying its operations through the disposal of its Healthcare and InfoTech businesses. The company said it is confident in its standalone strategy but acknowledged the challenges of delivering its 2030 growth ambition amid macroeconomic and regulatory uncertainty.
“Whilst the DCC Energy Board remains confident in the energy strategy and associated 2030 Ambition announced in 2022, the Board believes the Consortium’s offer represents a compelling opportunity for shareholders to crystallise value in cash at an attractive premium,” said Mark Breuer, Chair of DCC Energy.
The acquisition has secured irrevocable undertakings from DCC Energy directors representing approximately 0.28% of the company’s issued share capital . The DCC Energy Board, advised by J.P. Morgan and UBS, intends to recommend unanimously that shareholders vote in favor of the acquisition.
“The company is at an important moment, and delivering the next phase of this transition across a complex asset base will require significant operational transformation against the backdrop of a changing and volatile energy market,” said Ryan Miller, Managing Director at KKR. “KKR has a long track record as an active owner in energy infrastructure and services, and we intend to draw on our global platform, operational expertise and sector experience.”
The Technology Disposal Additional Consideration is contingent on the sale of the Nexora Business, with payments ranging from zero to 125 pence per share based on net proceeds . If the Technology Disposal Net Proceeds reach at least $800 million, the full contingent payment will be made .
The scheme is subject to shareholder approval and sanction by the Irish High Court. The Scheme Meeting and Extraordinary General Meeting are expected in September 2026, with the transaction anticipated to become effective in the first quarter of 2027.
