DCC Energy shareholders are only set to receive a third of the additional maximum £1.25 (€1.47) payment on offer as part of the group’s takeover deal, contingent on a follow-on sale of it is technology unit.
The Dublin-based group agreed in late July to sell itself to US private equity firms KKR and Energy Capital Partners (ECP) for a £65.25-a-share upfront payment and the prospect of £1.25 extra per share if the Irish company’s tech division achieves at least $800 million (€712.7 million) in a sale.
However, DCC said on Friday that it is set to only receive net proceeds of $701 million for the tech unit, which it has agreed to sell to New York private equity firm One Equity Partners.
DCC said its shareholders are set to receive 42 pence per share from that deal. The technology unit, called Nexora, was already on the market before the consortium make their bid approach in April.
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“Under the terms of the transaction agreement [with KKR and ECP], if the technology disposal net proceeds are between $650 million and $800 million, the technology disposal additional consideration will be between zero and 125 pence per DCC Energy share calculated on a linear basis,” DCC said.
That reduces the total value of DCC’s imminent takeover from £5.73 billion to £5.66 billion.
The High Court in Dublin is due to hold a sanctioning meeting on the takeover, which was approved by shareholders last month.
“Nexora has been an important part of the DCC Group for many years and has built a strong market position through the expertise and commitment of its people,” said DCC chief executive Donal Murphy.
“This transaction recognises the quality of the business that the Nexora team has built and, subject to completion, will deliver additional value for DCC Energy shareholders. We believe One Equity Partners is well placed to support Nexora’s continued growth, investment and long-term development, benefiting employees and customers alike.”
DCC, whose businesses once spanned Robert Roberts tea and coffee and waste management, decided in late 2024 to abandon the remaining elements of its conglomerate roots to focus on energy. It subsequently sold its healthcare division and part of its tech business last year, before putting the larger part of the tech unit Nexora on the market.
Murphy signalled in a phone interview with The Irish Times after the shareholder meeting last month that he would like to remain on board to see out DCC’s goal to double the operating profit of the remaining energy division to £830 million between 2022 and 2030.
