Genel Energy has agreed to acquire Capricorn Energy in a deal that pays $3.75 in cash per Capricorn share plus a $0.99 per share special dividend, expected to be declared before completion. The offer represents a premium of about 34% to Capricorn's closing price on 10 March, the day before the offer period began, and is 48% above the three-month volume-weighted average price. In early trading, Capricorn's shares were up about 19%.
The acquisition would give Genel a second production base in its Tawke licence in the Kurdistan region of Iraq, complementing its existing 25% stake. The enlarged group would hold proven and probable reserves of 117 million barrels of oil equivalent, split roughly evenly between Kurdistan and Egypt. Combined production stood at just over 41,000 barrels of oil per day based on December 2025 exit rates. Genel said Egypt had been a target country for expansion, offering a well-established regulatory regime and stable contracts.
The deal is structured as a Scottish scheme of arrangement, requiring approval from 75% of votes cast at shareholder meetings. Capricorn's directors consider the terms fair and reasonable and intend to recommend them unanimously. The bidder has secured irrevocable undertakings to vote in favour from four shareholders, including activist investor Palliser Capital, covering about 39.3% of the register. Completion is expected during the second half of 2026 and requires consent of the Egyptian state oil company EGPC.
The deal would deliver cash and a special dividend to Capricorn shareholders if completed, while Genel would add a second production base and expand its reserve base to 117 million barrels of oil equivalent, with about 41,000 barrels per day of current production. Completion hinges on EGPC approval and is targeted for the second half of 2026.
The provided material does not include independent analyst commentary or expert quotes. It notes that Egypt is regarded as a favorable expansion target due to its established regulatory regime and stable contracts, and that the completion depends on EGPC consent.
