DCC board to recommend revised KKR and Energy Capital bid

Shares of DCC plc rose on Wednesday after the Dublin-headquartered energy distributor announced it had received a revised takeover proposal from a consortium of U.S. private equity firms KKR and Energy Capital Partners. The board stated it is now prepared to recommend the improved offer to shareholders if it is formalized.

The new proposal values DCC at approximately 5.7 billion pounds, or 6.6 billion euros. It consists of 65.25 pounds per share in cash plus a proposed final dividend of 1.47 pounds per share, bringing the total offer to 66.72 pounds per share. This represents a roughly 33 percent premium to DCC's average share price in the three months leading up to April 28, when the initial approach was made public, and is a 15 percent increase over the consortium's first offer of 58 pounds per share, which DCC's board unanimously rejected in late April as undervaluing the company.

In response to the revised bid, DCC's board said it intends to engage in discussions with the consortium to explore the proposal in further detail and to allow for a short period of confirmatory due diligence. The company also requested an extension of the regulatory deadline for a firm offer. The...