CAIRO — Genel Energy has raised its offer for Capricorn Energy to about $436 million, reclaiming the lead in a takeover contest that began with its original agreed bid in July before DNO intervened with a higher proposal.
Genel first secured Capricorn board backing with an offer worth about $360 million, or $4.74 a share. DNO subsequently entered the contest with a superior proposal and later revised its terms, prompting Capricorn to withdraw its recommendation of Genel’s original bid.
Genel has now returned with a higher offer of $5.74 a share, comprising $4.75 in cash and a planned $0.99 special dividend. The revised proposal is roughly 10% above DNO’s latest offer, leading Capricorn’s board to restore its recommendation of the Genel transaction.
The contest is increasingly significant for Egypt because Capricorn is now predominantly an Egypt-focused producer, with a substantial onshore portfolio in the Western Desert. Working-interest production averaged 19,337 barrels of oil equivalent a day in the first half of 2026.
The asset base became more valuable after Egypt consolidated eight Capricorn concessions into a revised Western Desert agreement that became effective in May. The framework extended asset life, widened exploration and development acreage and improved fiscal terms.
Capricorn estimates the new terms increase netbacks by about $5 per barrel of oil equivalent at an $80 oil price, directly improving the economics of future drilling and production.
The company also added 20.2 million barrels of oil equivalent of 2P reserves in 2025, equivalent to a 277% reserve-replacement ratio, indicating reserve additions substantially exceeded annual production depletion.
For Genel, historically concentrated in the Kurdistan Region of Iraq, Capricorn would add a sizable producing platform in North Africa and broaden its geographical exposure.
For Egypt, the significance extends beyond ownership. Two regional operators competing for Capricorn provide a direct indication of the value investors are assigning to producing Egyptian assets following the restructuring of upstream terms.
Completion remains subject to outstanding Egyptian government approval, with the transaction targeted for the fourth quarter of 2026.
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