Home / Business and Economy / Shareholders Reject DCC Takeover Bid
Shareholders Reject DCC Takeover Bid
16 Jul
Summary
- Top shareholders oppose £5.7bn takeover bid for DCC.
- Revised offer still significantly undervalues the energy group.
- Investors demand over £70 per share, citing growth potential.
Top shareholders have voiced strong opposition to an enhanced £5.7bn takeover proposal for DCC, a London-listed energy group. Fidelity International, Aviva Investors, and Marathon Asset Management have all come out against the latest offer from private equity firms KKR and Energy Capital Partners. These investors believe the bid significantly undervalues the company and its future growth prospects.
DCC stated the revised proposal included an additional £1.25 per share, contingent on proceeds from the sale of its technology arm, Nexora. However, the base cash offer remained at £65.25 per share, plus a final dividend. This has led prominent shareholders to declare their stance against the deal, which could be one of the largest take-private transactions of a UK-listed firm this year.
Aviva Investors highlighted that the modest increase was insufficient, stating it would not be in the interest of their clients to sell at this level. Marathon Asset Management echoed this sentiment, believing the offer fails to reflect DCC's long-term growth potential in energy distribution across Europe and the US. Fidelity International confirmed its position, asserting that the proposal does not adequately reflect fair value and growth prospects, and they would not accept anything below £70 per share.
