(Sharecast News) - DCC said on Wednesday that it has received an improved takeover proposal from US private equity firm KKR and Energy Capital Partners at 6,672.22p per share that it would be minded to recommend to shareholders.
In April, DCC announced that it had rejected a 5,800p proposal from the consortium on the basis that it "fundamentally" undervalued the group and its prospects.

However, it said on Wednesday that since then, it has received a series of further proposals from the consortium, the latest being 6,672.22p. This comprises 6,525.0p in cash and the proposed final dividend of 147.22p per share for the year to the end of March 2026.

The revised proposal represents a premium of around 15% to the initial proposal and 33% to DCC's volume-weighted average share price of 5,005p for the three-month period ended 28 April.

Having carefully evaluated the most recent offer with its advisers, DCC said the financial terms are at a level which the board would be minded to recommend to shareholders should a firm intention to make an offer be made.

"As such, the board of DCC intends to engage in discussions with the consortium to explore the revised proposal in further detail and allow for the consortium to complete a limited period of confirmatory due diligence," it said.

As a result, DCC has requested and obtained an extension to the 'put up or shut up' deadline by which the consortium must either announce a firm offer or walk away. Under Irish takeover rules, the consortium now has until 1700 BST on 8 July.

At 1345 BST, the shares were up 3.3% at 6,200p.

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