Private equity firms KKR and Energy Capital Partners are considering raising their offer for Irish energy distributor DCC after the company rejected an earlier takeover proposal, according to a Bloomberg News report citing unnamed people familiar with the matter.
The consortium’s initial approach, valued at approximately £4.95bn, was rejected by DCC in April, with the company arguing that the proposal undervalued the business. The bid was priced at 58 pounds per share.
Bloomberg reported that the firms are now working with advisers to determine the extent of a possible revised offer ahead of the 10 June deadline under UK takeover regulations, after which the consortium must either submit a firm bid or step away.
DCC supplies liquefied gas, biofuels and renewable energy products to businesses and households across multiple markets. The company has also been reshaping its portfolio through the disposal of non-core healthcare and technology assets in order to sharpen its focus on energy operations.
Energy Capital Partners and DCC declined to comment on the report, while KKR had not responded to requests for comment at the time of publication.
