DCC (DCC) – Business Services
| Price: £50.67 +1.1% | P/E: 15.4x |
| Market Cap: £4.9bn | Yield: 1.4% |
Not new news but DCC confirmed today it would return £600 million of cash from the sale of its healthcare arm to investors through a tender offer for 11.95 million shares or around 12.3% of its issued capital.
The price for the shares will range between £50.20 (Friday’s close) and £53.20 (6% above Friday’s close), which pretty much caps the upside for the foreseeable future.
The tender offer opens today and will close at 1pm on December 17. If you’re a shareholder and you use an investment adviser or platform, you should get a message telling you how to tender your shares.
Our View
This buyback was announced back on September 10 so all investors needed to know was the price and the timescale.
DCC has been steadily selling off non-core assets and offloaded its UK & Ireland IT business last month, returning £100 million to shareholders.
The firm said earlier this month operating profit was down in Q1 but trading improved in Q2 leading to ‘modest’ profit growth. Note the first half tends to be seasonally weaker than the 2H and DCC still expects ‘good’ profit growth the year to March 2026 along with ‘significant strategic progress and ongoing development activity’.
Read the press release here: https://www.dcc.ie/investors
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