DCC Energy is set to become the latest FTSE 100 company to leave the London Stock Exchange after agreeing to sell up to private equity.
The Dublin-headquartered business has recommended that shareholders support a £5.75bn takeover by KKR and Energy Capital Partners (ECP).
Mark Breuer, the chairman of DCC Energy, said the deal “represents a compelling opportunity for shareholders to crystallise value in cash at an attractive premium to DCC Energy’s historical trading price”.
KKR and ECP have agreed to pay 6,525p per share in cash in addition to a 147.22p dividend.
The offer marks a 36pc premium on DCC’s average share price over the past 12 months and a roughly 4pc premium on its closing share price on Friday evening.
DCC put its technology subsidiary Nexora up for sale earlier this year. Under the terms of the KKR and ECP deal, DCC’s shareholders would also receive an additional 125p cash dividend per share if Nexora is sold for at least $800m (£600m).
The takeover will fuel fears about the decline of the London stock market after a string of deals so far this year. EasyJet and warehouse giant Segro are among the other listed businesses to have agreed takeovers.
DCC previously rejected a £4.95bn offer from KKR and ECP in April this year, saying at the time that it “fundamentally undervalues the company and its future prospects”.
DCC was started in 1976 and floated on the London Stock Exchange in 1994 before becoming a member of the FTSE 100 in 2015.
It was one of Ireland’s first venture capital businesses, focused on investing in start-ups before expanding into the energy industry in the 1980s.
Today, it is a major fuel distributor across Europe and has more recently branched out into supplying solar energy and other “off-grid” energy solutions such as liquid gas.
New York-based KKR is one of the world’s biggest private equity firms, with more than $750bn worth of investments. ECP, based in New Jersey, was launched in 2005 by three former Goldman Sachs investment bankers and manages more than $70bn worth of investments.
Both are investing heavily in the energy industry in anticipation of surging demand for power, driven by the build out of AI data centres.
KKR struck a $50bn deal with ECP in 2024 to invest in the power and data centre infrastructure needed for AI.
Data centre operators are increasingly turning to solar and gas turbines for power amid delays in securing grid connections.
Jim Flavin, DCC’s founder and former chief executive, urged shareholders this month to reject an improved £5.7bn offer from KKR and ECP, calling it “miserable”. Mr Flavin owns a 3pc stake in DCC.
Mr Breuer said: “We are confident that the consortium will be strong stewards of DCC Energy’s 50-year heritage and support the business during its next phase of growth.”
As well as fuel distribution, DCC runs a network of more than 1,100 petrol stations across Europe, while also selling gas and electricity to households and businesses. It has acquired businesses from both Shell and BP as it has grown.
