LONDON, July 2, 2026, 23:03 BST
- Genel Energy finished the session 6.95% higher at 55.40p after it accepted a $360 million bid for Capricorn Energy. Shares in Capricorn climbed 19.79% to 345p.
- Genel’s bid is about 1.8 times its value after shares jumped, with the offer putting the company at £271 million against its £152.67 million market cap.
- Genel said it may tap its senior unsecured bond, but needs consent from EGPC and votes from Capricorn shareholders first.
Genel Energy PLC (LON:GENL) surged Thursday after it said it would acquire Capricorn Energy PLC (LON:CNE). But the main question isn’t the initial rally. Investors still need to decide if they want to support a cash offer that tops Genel’s market cap.
Genel ended up 3.60p at 55.40p and Capricorn gained 57p to 345p. The FTSE 100 climbed 1.67%, so Genel outperformed the main London index by over four points, with investors also facing a live financing question.
| Thursday close | Price move | Day high | Volume |
|---|---|---|---|
| Genel Energy | 55.40p, up 6.95% | 58.3042p | 1,579,626 |
| Capricorn Energy | 345.00p, up 19.79% | 353.00p | 1,574,053 |
| FTSE 100 | up 1.67% | — | — |
Genel is offering $360 million for Capricorn, or £271 million, with Capricorn shareholders set to get $4.74 a share. That breaks down into $3.75 in cash and a planned $0.99 special dividend. In sterling, that’s 357p a share, marking a 34% premium over Capricorn’s March 10 close and up 48% over its three-month volume-weighted average.
The numbers on this deal explain the stock move. Genel’s market cap after the jump was £152.67 million, while it’s offering £271 million to buy Capricorn. That means Genel is making a bid for a company about 1.8 times bigger than itself by market value.
| Scale measure | Genel before deal | Pro-forma group |
|---|---|---|
| 2025 working-interest production | 17,520 bopd | |
| December 2025 exit-rate output | 20,000 bopd | 41,003 bopd |
| 2P reserves | 64 MMbbls last audited KPI | 117 mmboe |
| Implied added exit-rate output | — | around 21,003 bopd |
Genel said its production comes from a 25% non-operated stake in the Tawke PSC in Iraq’s Kurdistan region, where costs are about $4 a barrel. After the deal, the combined company’s December 2025 exit-rate output would be split about evenly between Kurdistan and Egypt.
Genel said just eleven minutes after the takeover news that it hired Pareto Securities as manager and bookrunner on a potential tap of its senior unsecured bond, if market and price allowed. Genel said the money would be for “general corporate purposes”. TradingView
Genel CEO Paul Weir called the deal “a landmark transaction,” saying it marks the start of Genel’s role as a partner in Egypt’s energy sector. Capricorn CEO Randy Neely said Capricorn needs more scale for better liquidity and that the deal offers shareholders “a clear and efficient exit.” TradingView
Capricorn’s board plans to back the scheme. Genel already has binding commitments from investors holding about 39.3% of Capricorn shares, including Palliser Capital, Newtyn Management, Kite Lake Capital Management, and Madison Avenue Partners. The deal still requires a Capricorn shareholder vote and approval from the Egyptian General Petroleum Corporation.
Shore Capital lowered Capricorn to “hold” from “buy” following the deal. The broker said it “had some sympathy” for arguments that the offer undervalues the company, coming in around 27% below its 489p per share tangible NAV. But it also pointed out that Genel is a proven regional producer with a clear funding strategy. Sharecast
Genel’s expansion in Egypt comes while its Kurdistan operations still face risks tied to export routes. Turkey’s energy minister said on Wednesday he met with top Iraqi officials about energy ties, including the Iraq-Turkey oil pipeline. The current pipeline agreement is set to expire July 27. Baghdad asked Ankara to extend for at least a year, but Turkey said it does not want to continue under current terms.
Capricorn needs to put out the scheme document within 28 days after announcing the deal on July 2. The transaction is set to complete in the second half of 2026 if conditions are met. The long-stop date is Jan. 2, 2027.
