No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
(Sharecast News) - DCC Energy has agreed to sell its technology division, Nexora, to funds managed by One Equity Partners in a deal valuing the business at $725m on a cash and debtfree basis.
The FTSE 100-listed firm said on Friday that the disposal remains subject to customary regulatory approvals and was expected to complete on or after 1 March 2027.
The sale comes as part of the recommended takeover of DCC Energy by Dragon Bidco, the vehicle backed by Energy Capital Partners and KKR, which shareholders approved in September.
Under the terms of the offer, investors will receive 6,525p in cash per share, plus up to 125p of additional consideration depending on the net proceeds generated from the Nexora sale.
DCC Energy said that, based on current estimates and assuming completion on 1 March 2027 with no leakage, the Nexora disposal was expected to generate $701m of net proceeds. That would imply an additional 42p per share for shareholders, though the final amount will be determined after completion and could range from zero to the full 125p depending on the outcome.
Chief executive Donal Murphy said: "Nexora has been an important part of the DCC Group for many years and has built a strong market position through the expertise and commitment of its people.
"This transaction recognises the quality of the business that the Nexora team has built and, subject to completion, will deliver additional value for DCC Energy shareholders."
As of 0900 BST, DCC shares were 0.078% lower at 6,440p.
Reporting by Iain Gilbert at Sharecast.com
See latest RNS on Sharecast
The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.