Top institutional investors, including Fidelity International, Ninety One, and Aviva Investors, are opposing the enhanced £5.7 billion ($7.63 billion) private equity bid for energy services group DCC. The offer, from a consortium including KKR and Energy Capital Partners (a subsidiary of Bridgepoint), increased from an initial £58 per share to £65.25 per share plus dividends of £1.47, but shareholders argue it significantly undervalues the FTSE 100 company.
Fidelity International, DCC's largest shareholder with a 7.99% stake, through its UK equity fund manager Alex Wright, believes the revised offer does not reflect DCC’s fair value or long-term growth potential. Wright has indicated he would not support an offer below 70p a share. Similarly, Alessandro Dicorrado of Ninety One stated, "I don’t like the price on DCC," while Matt Bennison at Aviva Investors, holding 2.15% of DCC, called the proposal a "significant undervaluation" and expressed disappointment if the board recommends it.
These investors highlight DCC’s strong growth prospects, high returns, attractive cash generation, and strategic repositioning to focus on its energy division as reasons for a higher valuation. DCC had previously announced a three-way business split in 2024, emphasizing its energy unit which accounted for over two-thirds of overall profits. The company also sold its health unit for approximately $1.33 billion in 2025 and its infotech business for $133.66 million, aiming to simplify and redeploy capital. The private equity consortium has until July 8 to make a firm offer, facing pressure to substantially improve its bid to gain investor support.
