Two prominent UK equity managers have significantly reduced their holdings in DCC Energy despite previously voicing strong opposition to a private equity buyout of the company.

In early July, Alessandro Dicorrado of Ninety One publicly criticized the £5.75 billion offer from KKR and Bridgepoint-owned Energy Capital Partners, describing the bid price of £65.25 per share plus dividend as insufficient. Matt Bennison, head of UK active equities at Aviva Investors, similarly stated the offer was not in the best interest of his clients. Both managers expressed concern that the price undervalued the energy distributor.

Since those public statements, filings under Rule 8.3, which require disclosure of shareholdings by institutional investors, reveal that Ninety One and Aviva have been steadily selling most of their stakes in DCC at prices below the offer. While exact sale prices are undisclosed, DCC’s stock has traded between approximately £60.90 and £63.90 since the bid was announced. This marks a discount to the total consideration of £66.72 per share, including a 147 pence dividend.

Ninety One has decreased its position from 3.4 percent of DCC shares to 0.69 percent, while Aviva has reduced its holding from 2.19 percent to 0.7 percent. When questioned about the sales, Ninety One declined to comment. Aviva confirmed it still believes the offer undervalues the company but reasoned that shareholder opposition was unlikely to prevent the deal from proceeding. Instead of retaining a stake for potential fixed upside, Aviva said it opted to sell and redeploy client capital into other undervalued opportunities, seeking better returns.

The private equity offer has received the DCC board’s recommendation, despite the dissenting views of some shareholders. The unfolding response from major investors highlights the complex considerations institutional owners face when evaluating takeover bids, balancing valuation concerns against the likelihood of successful intervention and alternative investment prospects.