London-listed oil and gas producer Genel Energy has agreed to a recommended cash acquisition of Edinburgh-headquartered Capricorn Energy, in a deal valued at approximately £271 million (US$360 million). The transaction, effected through Genel’s wholly-owned subsidiary Genel Energy No.9 Limited (Bidco), will see Capricorn shareholders receive $4.74 per share, comprising a $3.75 cash payment and a $0.99 special dividend.
This move marks a significant strategic expansion for Genel, diversifying its asset base beyond its primary production interests in the Kurdistan Region of Iraq (KRI). Genel currently holds a portfolio that includes production assets in the KRI, as well as exploration licences in Oman and Somaliland.
Capricorn Energy, an independent energy company that has been publicly listed for over 30 years, focuses its core operations on onshore development and production assets in Egypt’s Western Desert. In May 2025, Capricorn reached an agreement with the Egyptian General Petroleum Corporation (EGPC) to consolidate eight of its 50:50 jointly owned concessions into a single, integrated licence, designed to provide a platform for future growth. This agreement received formal parliamentary ratification on 30 March 2026.
Randy Neely, Chief Executive of Capricorn, commented on the acquisition, stating: “Since my appointment three years ago, the team has delivered strongly against our strategic priorities – returning approximately $600m to shareholders, reducing costs, and maximising value from our Egyptian asset base through the recently signed merged concession, establishing a sustainable long-term business.” He added, “However, Capricorn requires greater scale to materially improve trading liquidity. We believe the transaction with Genel crystallises the value created by Capricorn while providing shareholders with a clear and efficient exit.”
For the financial year ended 31 December 2025, Genel Energy reported working interest production of 17,520 barrels of oil per day (bopd), with an EBITDAX of $43 million, a notable increase from $1 million in 2024. Capricorn has also prioritised shareholder returns, distributing approximately $600 million since 2023, alongside efforts to streamline operations and reduce costs.
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Paul Weir, Chief Executive Officer of Genel, described the deal as a “landmark transaction to acquire a leading oil and gas portfolio in Egypt – a move that delivers our strategic intent, reshapes our company’s growth trajectory, diversifies our portfolio of oil and gas fields and begins our role as a partner in Egypt’s energy future.” Weir further emphasised that the acquisition “brings high‑quality assets, material reserves, and a talented local workforce that together create immediate scale and opportunity for further onward investment and growth.” He highlighted Genel’s intention to apply its expertise to “accelerate production optimisation, replace reserves, reduce unit costs, and capture significant near‑term cash flow.”
The transaction, which is subject to approval from Capricorn’s shareholders and regulatory consents, including from the Egyptian General Petroleum Corporation, is expected to become effective during the second half of 2026.
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