In what was described as a ‘landmark’ deal, Capricorn Energy (LON:CNE) agreed a takeover offer from Genel Energy (LON:GENL). The cash offer, at $4.74 per Capricorn share including dividends, values the firm at $360 million or £271 million.
Landmark acquisition
Genel CEO Paul Weir called the acquisition ‘a landmark transaction that delivers our strategic intent, reshapes our company’s growth trajectory, diversifies our portfolio of oil and gas fields and begins our role as a partner in Egypt’s energy future’.
Genel’s only existing production base is a 25% non-operated working interest in the Tawke PSC, located in Kurdistan. Comprised of two fields, it produced an average of 17,520 barrels of oil per day during 2025 with operating costs of around $4 per barrel.
The firm has been looking to buy new production assets to build out a bigger, more diversified base. Capricorn’s Egyptian Western Desert portfolio would more than double Genel’s output and would be ‘an attractive strategic pillar’, added Weir.
Capircorn CEO Randy Neely said the deal ‘crystallises the value created while providing shareholders with a clear and efficient exit’. Neely also acknowledged Capricorn needed ‘greater scale to materially improve trading liquidity’.
Capricorn had clearly been looking for a partner since walking away from tiddler Deltic Energy (LON:DELT) in May. Meanwhile, it had received multiple approaches from a Saudi-based bidder who repeatedly had to ask to extend the deadline.
Today’s deal brings certainty, and as the CEO says gives shareholders a ‘clear and efficient exit’. The price isn’t on a par with the old highs but it’s the best level in over two years.
Moreover, since Neely took over three years ago investors have enjoyed around $600 million (£450 million) of cash returns. Conversely, for UK small- and mid-cap bargain-hunters, it’s more evidence of the pool of opportunities shrinking.
Read the press release here: https://www.capricornenergy.com/investors/
