Energy firm DCC has said it would be “minded” to back a £5.7 billion sweetened takeover approach from a consortium of investors in what would deal yet another blow to the London market.
London-listed DCC – headquartered in Dublin, Ireland – said it had recently received a higher proposal from private equity giant KKR and Energy Capital Partners worth £65.25 a share in cash, plus 147.22p in dividends.
The total of £66.72 is far higher than the £58 a share or £4.95 billion approach which DCC rejected in late April, helping shares in the FTSE 100 firm rise by another 3%.
The energy distributor has already seen its stock jump by around 12% since the April approach.
DCC said: “Having carefully evaluated the revised proposal together with its advisers, the board of DCC considers that the financial terms of the revised proposal are at a level which the board of DCC would be minded to recommend to DCC shareholders.”
The bidders now have until 5pm on July 8 to announce a firm offer for DCC or walk away under takeover rules.
It could see DCC join an ever-growing list of FTSE companies to be bought and taken private in recent months.
On Monday, sweeteners and ingredients giant Tate & Lyle agreed a £2.7 billion takeover by US rival Ingredion, ending a history of more than 165 years as a British-owned company.
Last week, William Hill owner Evoke agreed a £243.1 million takeover by Greek gambling firm Bally’s Intralot, while laboratory testing company Intertek’s board also recently gave its initial backing to a £9.4 billion proposal from Swedish firm EQT.
FTSE 100 insurance firm Beazley agreed a deal in March to be bought by Swiss firm Zurich for £8.1 billion and asset manager Schroders is set to be taken private, with a £9.9 billion takeover by US investment company Nuveen.
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