Genel Energy has raised its recommended cash offer for UK-listed Capricorn Energy to $436m (£328.83m), overtaking a competing $396m bid from Norway's DNO and reclaiming board support for a deal centred on onshore development and production assets in Egypt's Western Desert.

The increased offer, made through wholly owned indirect subsidiary Genel Energy No.9 (Bidco), values Capricorn at $5.74 per share. That comprises $4.75 in cash plus a $0.99 special dividend intended to be declared before the scheme becomes effective.

The revised terms carry a 10% premium over the $5.214-per-share offer DNO submitted on 17 September 2026, when the Norwegian company raised its bid to $396m (Nkr3.76bn). Against Capricorn's closing price of 266p on 10 March 2026 — the day before the offer period began — Genel's price represents a 63% premium.

Capricorn's directors withdrew their previous recommendation for the DNO proposal with immediate effect and backed Genel's enhanced offer. The board said the bid provides shareholders with "superior value, certainty and deliverability".

The company has adjourned shareholder meetings that had been convened for 16 October 2026 to consider DNO's offer.

Third round of bidding

The move marks the latest turn in a contest that began with Genel's $360m offer in July 2026. That initial proposal drew overwhelming support, with more than 99% of voting Capricorn shares backing it at meetings in August, before DNO forced a repricing earlier this month.

Genel has locked in revised irrevocable undertakings from shareholders including Palliser Capital, Newtyn Management, Kite Lake Capital Management and Madison Avenue Partners. Together with commitments from an executive director, these agreements cover nearly 27.91 million shares, or approximately 39.1% of Capricorn's issued share capital.

The Egyptian Competition Authority cleared the transaction on 7 September 2026. One Egyptian regulatory condition remains outstanding.

Bidco will fund the cash consideration, fees and expenses from existing cash resources and new debt financing. Genel expects completion in the fourth quarter of 2026.

The prize is Capricorn's core portfolio of onshore development and production assets in Egypt's Western Desert, where the company concentrates its operations.

The watch item: the remaining Egyptian regulatory condition and the adjourned shareholder meetings, which will determine whether Genel's third and highest bid closes on schedule in the fourth quarter — or whether DNO returns with a counter.