Energy distributor DCC is close to accepting a £5.7 billion takeover proposal from a consortium of KKR and Energy Capital Partners despite shareholder pushback, Bloomberg News has reported, citing people familiar with the matter.
DCC distributes liquid gas, biofuels, and renewable energy to businesses and households and its brands here include Flogas and Certa.
It had signalled its support for a sweetened £65.25 cash per share proposal in June, after rejecting a previous bid which it deemed too low.
Two of DCC’s largest investors, Aviva Investors and Fidelity International, have previously opposed the deal, saying the buyout firms were undervaluing the company, the report said.
The consortium is pushing ahead with its existing offer ahead of a deadline today, the report added, with DCC’s board close to a final sign-off on the deal.
London-listed DCC and KKR declined to comment on the report, while Energy Capital did not immediately respond to a Reuters request.
Under UK Takeover Panel rules, the consortium has until July 15 to make a firm offer for DCC or walk away.