DCC rejects bid from US private equity consortium

DCC PLC (LSE:DCC) has rejected a takeover approach from US private equity firms Energy Capital Partners and KKR, saying the proposal undervalued the business.

The FTSE 100-listed petrol station owner and energy support services group yesterday revealed that it had received the unsolicited, indicative cash offer valuing the company at 5,800p per share. The proposal assumed no further dividends would be paid.

DCC’s board said it had reviewed the approach with advisers and “unanimously and unequivocally” rejected it yesterday.

Directors at the Dublin-headquartered group said the offer “fundamentally undervalues the company and its future prospects”.

Under Irish takeover rules, the consortium now has until 5pm London time on 10 June to clarify its intentions.