Capricorn Energy plc directors have agreed to sell the company for US$360 million (£271m) cash to Genel Energy plc.
SCALE
The Scottish company had previously been awaiting a cash offer from Saudi Arabia-based Alamadiyaf al-Masiyyah for Trading LLC.
Capricorn’s onshore Egypt assets will add to Genel’s production interests in the Kurdistan region of Iraq and exploration in Oman and Somaliland.
Under the agreement, each Capricorn shareholder will receive US$4.74 (£3.57) in cash for each share, which comprises US$3.75 in cash and special dividend of US$0.99.
The price of each share is a 34% premium to the closing price per Capricorn share of 266 pence on 10 March 2026.
The transaction is subject to shareholder approval and regulatory consent in Egypt, where Capricorn’s joint venture with operator Cheiron Energy holds licences in the Western Desert.
The acquisition, through a Scottish Court scheme of arrangement, will become effective during the second half of 2026.
Chief executive officer Randy Neely said: “Since my appointment three years ago, the team has delivered strongly against our strategic priorities – returning approximately US$600 million to shareholders, reducing costs, and maximising value from our Egyptian asset base through the recently signed merged concession, establishing a sustainable long-term business.
“However, Capricorn requires greater scale to materially improve trading liquidity.
“We believe the transaction with Genel crystallises the value created by Capricorn while providing shareholders with a clear and efficient exit.”
Capricorn’s major shareholders Palliser Capital (UK) Ltd, Newtyn Management LLC, Kite Lake Capital Management (UK) LLP and Madison Avenue Partners LP, with an aggregate 27,749,043 shares equal to a total of 39.3% stake, have made irrevocable undertakings to vote in favour of the offer.
Genel currently holds a 25% non-operated working interest in the Tawke production sharing contract located in the Kurdistan region of Iraq, and exploration licences in Oman and Somaliland.
Production averages 17,520 barrels of oil per day for 2025, with 20,000 bopd exit rate in December 2025).
The PSC comprises two “very high-quality” fields of Tawke and Peshkabir, which in combination represent a “world class licence”.
On completion of the acquisition, the enlarged group will have 2P reserves of 117 million barrels of oil equivalent and production of 41,003 bopd from Kurdistan and Egypt.
Geneal CEO Paul Weir described the deal as a “landmark transaction” and added: “The acquisition of Capricorn Energy and its portfolio brings high‑quality assets, material reserves, and a talented local workforce that together create immediate scale and opportunity for further onward investment and growth.
“By applying our technical and operational capabilities to these assets, we will work with the operator [Cheiron Energy] to accelerate production optimisation, replace reserves, reduce unit costs, and capture significant near‑term cash flow while preserving optionality for future development.
“We enter this next chapter of further value creation with resolve and determination.”