Capricorn Energy, the London-listed oil and gas exploration company, has confirmed it received a preliminary takeover proposal from Samos Investments at 381p per share in cash. The offer, which values the firm at roughly £1.3bn, represents a substantial premium over the company's recent trading levels and has ignited speculation of a bidding war.
Shares in Capricorn surged more than 35% in early trading on Wednesday, hitting 375p, as investors welcomed the unsolicited approach. The stock had been under pressure in recent months amid volatile oil prices and concerns over the company's production outlook. The bid from Samos, an investment vehicle with ties to Middle Eastern capital, marks a vote of confidence in Capricorn's North Sea and Egyptian assets.
Analysts at Peel Hunt described the offer as 'compelling' given the current valuation of the company, which had been trading at a discount to its net asset value. 'This bid crystallises value that the market had arguably been ignoring,' they said in a note. 'Shareholders will now expect the board to engage fully, though there is no guarantee a higher offer will emerge.'
For UK investors and pension holders with exposure to the FTSE 250, the bid highlights the ongoing consolidation in the energy sector. Capricorn's board has said it is evaluating the proposal with its advisers and will make a further announcement in due course. The company has also cautioned shareholders not to take any action until a formal recommendation is made.
The bid comes as the oil and gas sector faces increasing pressure from the energy transition, with many investors weighing near-term cash returns against long-term decarbonisation goals. Samos has not disclosed its intentions for Capricorn's operations or workforce, but the deal would likely require regulatory clearance from UK authorities.