NewsNovo
The total price in DNO's recommended acquisition of Capricorn Energy PLC (LSE:CNE, OTC:CRNZF) has not changed.
What has changed is the structure: DNO has converted its US$396 million (£294 million) offer into a fully cash deal at US$5.214 per share, removing the condition that required Capricorn to declare and pay a US$0.99 special dividend before completion.
The case for the revision is straightforward on a unit-economics basis.
Under the original proposal, shareholders were pricing in execution risk: the US$4.224 cash component was certain, the US$0.99 dividend tranche was not.
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