Source: Sharecast
London-listed DCC, which is changing its name to DCC Energy, first received a takeover approach from Energy Capital Partners and KKR in April.
The new proposal, the second time the consortium has sweetened it, retains the initial cash consideration of 6,525p per share and a proposed final dividend of 147p per share. But it also includes a potential payment of 125p per share payable if net proceeds from the sale of DCC’s Nexora technology unit are at least $800m.
As a result, the so-called put up or shut up deadline has now been extended, giving the consortium until 1700 BST on 27 July to make a formal offer or walk away.
The update coincided with a trading update from DCC, released ahead of its annual general meeting. It confirmed that in its "seasonally less significant" first quarter, operating profit remained up on the previous year and in line with expectations. It concluded: "DCC continues to expect ongoing strategic progress, growth and continued development in the year ahead."
The former conglomerate first announced late in 2024 that following a strategic review it planned to break itself up to focus solely on its energy business, which sells and distributes fuel and renewable energy to businesses and households. Since then it has sold its healthcare unit for £1bn and its Info Tech arm.
The company is due to publish numbers for the six months to 30 September in November.
As at 1130 BST, the stock was up 1% at 6,350p.
Dan Coatsworth, head of markets at AJ Bell, said the deal "looks likely to go through".