Genel Energy Bids Higher in Capricorn Energy Takeover Battle

By the Editorial Team · Saturday, September 26, 2026

Genel Energy has raised its bid to acquire Capricorn Energy to approximately $436 million, offering $5.74 per share in cash plus a special dividend, surpassing rival DNO’s latest $5.21 per share cash offer. The increased bid reflects a competitive takeover battle that could boost Genel’s production portfolio and cash flow by adding Capricorn’s Egyptian and other assets.

Genel Energy has submitted a new, higher bid to acquire Capricorn Energy, intensifying the ongoing takeover contest for the London-listed oil and gas explorer. The latest offer values Capricorn at approximately $436 million, or $5.74 per share (434p), representing a 10 percent increase over the previous proposal by Norwegian firm DNO. Genel’s bid comprises $4.75 in cash alongside a special dividend of 99 cents to be paid before the transaction closes.

DNO recently adjusted its bid to a fully cash-based offer valued at about $5.21 per share, equivalent to roughly $396 million. This came after DNO had outbid Genel’s initial $360 million offer made in July. Both companies emerged as leading contenders following the withdrawal of other interested parties, including Saudi Arabia’s Cafani Group and UK-based private equity firm Samos Energy.

Genel and DNO are existing partners in operations within the Kurdistan region. Earlier in the summer, Genel’s board rejected a £202 million takeover proposal from DNO, citing inadequate valuation. With the latest offer, Capricorn shareholders stand to gain a 63 percent premium compared to Capricorn’s share price of 266p on March 10, prior to any takeover speculation.

Headquartered in Edinburgh, Capricorn holds a stake in producing assets in Egypt’s Western Desert. The company reported an average production of 19,337 barrels of oil equivalent per day in the first half of the year and anticipates annual output exceeding 20,000 barrels per day in 2023. Earlier this year, Capricorn secured parliamentary approval for improved terms related to its Egyptian concession agreements, potentially enhancing its operational outlook.

Genel announced it has obtained irrevocable undertakings from directors and shareholders representing 39.1 percent of Capricorn’s shares. Supporters include investment firms such as Palliser Capital, Newtyn Management, Kite Lake Capital Management, and Madison Avenue Partners. Analysts speculate that DNO may return with a revised offer amid the competitive bidding environment.

Following the latest developments, Capricorn’s shares rose 14 percent to 450p, while Genel’s shares declined 1.75 percent to 62p. Market observers note that acquiring Capricorn would provide Genel with greater production diversity, expanded drilling opportunities, and additional cash flow.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.