Capricorn’s bid for Genel Energy lays out a £271 million deal, set against the oil group’s £160 million market cap. LONDON, July 5, 2026, 20:02 BST
- Genel Energy PLC (LON:GENL) closed Friday at 56.80p bid and 57.60p offer, gaining 4.51%. The FTSE All-Share put on 0.28%.
- The Capricorn Energy PLC (LON:CNE) cash deal sets the target’s value at $360 million, or £271 million. That’s about 1.7 times Genel’s latest market cap.
- Genel put out $35 million more in bonds on Friday, following news of a bridge facility of up to $125 million for the deal.
London markets were closed Sunday, so Genel Energy PLC (LON:GENL) will open Monday facing a bigger funding hurdle on top of the Kurdistan oil export problem. Last week, Genel said it would buy Capricorn Energy PLC (LON:CNE) for $360 million in cash and pay a special dividend, then tapped its senior unsecured bonds for $35 million.
The main thing for holders is scale. Capricorn’s fully diluted valuation of £271 million is roughly 1.7 times Genel’s £159.56 million market cap on Hargreaves Lansdown after Friday’s close. The offer is mostly cash and reshapes Genel’s assets, but investors are comparing debt, cash burn, and deal signoffs versus a small equity pile.
| Measure | Genel / deal read-through |
|---|---|
| Friday sell / buy quote | 56.80p sell, 57.60p buy |
| Friday share move | up 2.50p, or 4.51% |
| FTSE All-Share Friday move | gained 0.28% |
| Latest stated market cap | £159.56m |
| Capricorn acquisition value | £271m |
| Acquisition value / Genel market cap | approximately 1.7x |
Genel shares shot up 9% after news of the bid, and Capricorn jumped as much as 22% to levels not seen since 2012, according to Reuters. By Friday afternoon, Fidelity data showed Genel up 4.51% for the day at 16:35 BST, with the shares trading in pence and prices showing a delay of at least 15 minutes.
Capricorn shareholders are set to get $4.74 per share under the offer: $3.75 in cash and a $0.99 special dividend. The 357p per share figure in sterling values the deal at a 34% premium to Capricorn’s closing price on March 10, and 48% above its three-month volume-weighted average price, according to both companies.
| Funding and deal item | Disclosed amount |
|---|---|
| Capricorn full value | $360 million / £271 million |
| Cash offer per Capricorn share | $3.75 per Capricorn share |
| Proposed special dividend | $0.99 per Capricorn share |
| Bridge loan facility | up to $125 million |
| Friday’s bond tap | $35 million |
| Bonds after tap | $135 million |
| Bridge plus tap as percent of deal | about 44% |
Genel Energy on Friday priced its bond tap at 104% of nominal, taking total bonds outstanding to $135 million after settlement. The company said proceeds are for general corporate purposes. It said the bridge facility is aimed at helping fund the Capricorn cash consideration with current cash resources.
Genel said the deal would shift the group’s production mix. On a pro-forma basis, the combined company would hold 2P reserves of 117 million barrels of oil equivalent and produce 41,003 barrels per day, using December 2025 exit rates. Output would be split evenly between Kurdistan and Egypt.
The split is key because Genel’s base production still depends on Tawke in Iraqi Kurdistan. In its Q1 update, Genel said working-interest production dropped to 13,200 barrels per day from 19,320 in Q4 2025. Q1 free cash flow was a $2 million outflow. Cash at March 31 stood at $222 million, with $92 million of debt and $131 million of net cash.
Genel CEO Paul Weir called the acquisition a move that “reshapes our company’s growth trajectory.” Capricorn CEO Randy Neely said the deal offers shareholders “a clear and efficient exit.” EQS News
Genel already has the numbers leaning its way, but the deal isn’t done yet. Capricorn holders with 39.3% of the ordinary stock have made irrevocable commitments, though these drop out if someone else offers at least 6.5% more for the company. Reuters says Saudi Arabia’s Cafani Group has until July 29 to put in a formal bid.
Genel has no trading updates on the calendar to start the week. The next step is procedural, with the scheme document due within 28 days of the July 2 announcement. Shareholder meetings come after that. Egyptian consent is still needed. The companies see the scheme taking effect in the second half of 2026. Fidelity has Genel’s half-year numbers listed for August 2026.
