Energy buyout offers seller a handy escape hatch
KKR•Context on the agreed transaction
Irish energy distributor DCC Energy on July 27 agreed to be sold to a consortium of U.S. private equity firms KKR and Energy Capital Partners for £5.75 billion ($7.68 billion).
Under the offer, DCC shareholders will receive £65.25 per share in cash, a proposed final dividend of £1.47 per share, and a potential payment of up to £1.25 a share upon the sale of its Nexora technology unit.
The offer, the third tabled by the consortium, includes a more than 26% premium to the group's closing share price on April 28, the day before DCC received the consortium's first bid.
Shares in the firm were up 1.1% at £63.55 as of 0940 GMT on July 27.
Breakingviews column on DCC's sale
The author is a Reuters Breakingviews columnist. The opinions expressed are her own.
By Yawen Chen
LONDON, July 27 (Reuters Breakingviews) - DCC agreed to sell to KKR and Energy Capital Partners for nearly £6 bln. Investors have largely discounted the Irish energy distributor's board-backed 2030 profit targets. Without the deal, DCC would need to spend years trying to achieve them through difficult acquisitions.
Full view will be published shortly.
