Trans-Atlantic bid for DCC sends £5bn energy firm to top of FTSE 100
London-listed sales and distribution services group DCC became the target of a new trans-Atlantic bid for a top-tier FTSE 100 firm on Wednesday, sending its shares soaring.
The Dublin-based firm received an offer from famed US private equity house Kohlberg Kravis Roberts & Co, which linked up with Energy Capital Partners.
DCC said it had received “an indicative cash proposal” and that it was “evaluating the proposal”.
The firm did not disclose details on price. Its shares strode to the top of the stock market leader board, up 11 per cent in mid-session trade at 5,985p, a four-year high.
DCC’s board is being advised by J.P. Morgan Cazenove and UBS.
The firm, which is active in the energy sector, is the fourth FTSE 100 member to receive a takeover approach this year, alongside Beazley, Schroders and Intertek. DCC’s market value is around £5bn.
Offer adds to UK bids tally
Russ Mould at AJ Bell said: “Even though the would-be buyers are yet to set a price tag for their target, the total value of bids on the table for listed UK companies is already £29.7bn this year.
“DCC would add more than £5 billion to that tally on its own, if Wednesday’s share price gains are any guide.”
Under City rules, KKR and ECP have until 10 June to make an offer.
DCC describes itself as “a customer-focused energy business specialising in the sales, marketing and distribution of secure, cleaner and competitive energy solutions to commercial, industrial, domestic and transport customers”.
It has over 10m customers and almost 12k employees.
DCC offer follows Treatt bid
The approach was the second piece of deal news of the day.
Before the start of trade, London-listed flavour and fragrance maker Treatt accepted a £183m cash bid from German ingredients group Döhler.
The cross-Channel bid was issued at 305p in cash. Treatt’s stock strode toward the price, up over 45% to 299p.
Mould added that the DCC bid “suggests that the UK equity market continues to offer value, judging by how prospective trade and financial buyers from home and abroad seem keen to snap up London-listed companies.”