Major shareholders and company founder Jim Flavin have voiced strong opposition after the board of FTSE 100 firm DCC Energy approved a £5.7 billion buyout offer from private equity firms KKR and Energy Capital Partners on July 27, 2026.
The Dublin-based liquid gas and fuel distributor agreed to the takeover proposal, which offers investors £65.25 a share in cash.
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An additional £1.25 per share is contingent on the sale price of Nexora, DCC's technology division.
Critics argue the buyout significantly undervalues the business, despite a 36% premium over the three-month average share price before discussions became public.
The deal adds to a trend of public companies leaving the London Stock Exchange, following similar privatizations of Mitie, Tate & Lyle, and Evoke.
Founder Jim Flavin, still a major shareholder, criticized the decision given a 2022 corporate strategy aimed at doubling operating profits to £830 million by 2030.
"Why would the board go along with such a charade? I regard this price as totally inadequate," Flavin said.
He also expressed being "astounded" by the board's stance.
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Institutional investors Aviva Investors and Fidelity have also voiced strong disapproval.
Matt Bennison, head of UK active equities at Aviva Investors, said the terms "represent a bad outcome for shareholders."
He added that the modest increase in the offer was insufficient: "This ‘increased’ offer, a very modest increase to that, is unsurprisingly not enough.
We firmly believe that [it] is not in the interest of our clients to sell the business at this level."
Board Defends Decision
Defending the deal, the company leadership pointed to the immediate value of the cash transaction, calling it "a compelling and certain opportunity."
The board stated that the acquisition allows investors to "realise value in cash today."
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Following the announcement, DCC shares rose just over 1% to £63.60.
