The Dublin-based sales and distribution services group, which operates in the energy sector and has over 10 million customers and nearly 12,000 employees, said it is evaluating the proposal. Its shares rose 11% to 5,985p, valuing the company at around £5bn. The price offered has not been disclosed.
The approach is the latest in a series of takeover bids for UK-listed companies. According to City AM, Russ Mould of AJ Bell noted that the total value of bids on the table for UK listed companies this year is £29.7bn, and that DCC would add more than £5bn to that tally. DCC is the fourth FTSE 100 member to receive a takeover approach this year, alongside Beazley, Schroders, and Intertek.
DCC said it had received 'an indicative cash proposal' and that it was 'evaluating the proposal'.
Under City takeover rules, KKR and ECP have until 10 June to make a formal offer. DCC's board is being advised by J.P. Morgan Cazenove and UBS. In a separate deal, Treatt accepted a £183m cash bid from Döhler at 305p per share.
Even though the would-be buyers are yet to set a price tag for their target, the total value of bids on the table for listed UK companies is already £29.7bn this year. DCC would add more than £5 billion to that tally on its own, if Wednesday’s share price gains are any guide.
This suggests that the UK equity market continues to offer value, judging by how prospective trade and financial buyers from home and abroad seem keen to snap up London-listed companies.