The board of Capricorn Energy has endorsed a revised $396 million cash takeover offer from Norwegian oil and gas operator DNO, signaling a likely departure from the London market. The updated offer matches the previous bid of 388 pence per share but consolidates the payment into a single transaction rather than splitting it between cash and a special dividend.

DNO, which is listed on the Oslo stock exchange and operates primarily in the Middle East and the North Sea, had already secured Capricorn’s board support for its acquisition proposal. Its initial offer exceeded a competing bid from London-listed Genel by $36 million. Other potential suitors, including the Saudi-backed Cafani Group and UK private equity firm Samos Energy, withdrew their interest earlier this year.

Capricorn, formerly known as Cairn Energy, was established in 1981 by Sir Bill Gammell, a former Scotland rugby international. While the company previously benefited from oil discoveries in India and offshore Africa, it underwent a significant board reshuffle in early 2023 amid shareholder dissatisfaction over merger plans. The firm maintains its headquarters in Edinburgh, but its current production of approximately 20,000 barrels of oil per day comes from onshore assets in Egypt’s Western Desert. The company’s operations gained additional stability this year following the approval of a concession agreement by the Egyptian government.

DNO, which produced over 88,000 barrels of oil per day in the second quarter of 2026—with much of that output sourced from its North Sea holdings—is funding the deal using existing cash resources. The acquisition represents an opportunity for DNO to expand its footprint in Egypt.

Capricorn’s board expressed unanimous support for the revised terms, citing the offer’s provision of “greater certainty of value” for shareholders. Both companies aim to finalize the transaction by the end of the first quarter of 2027.

Market analysts at Panmure Liberman noted that the main change for Capricorn shareholders is the elimination of uncertainty around whether the additional cash would be distributed as a special dividend. They suggested investors would likely prefer receiving a single payment. Shares in Capricorn closed steady at 384 pence following the announcement.

The potential exit of Capricorn is part of a broader trend of London-listed companies pursuing takeovers or relocations amid ongoing concerns about the future direction of the UK equity market. This year alone, exits have surpassed $100 billion in value, with notable firms such as Schroders, easyJet, Segro, and Beazley also involved in takeover processes.