Edinburgh-based oil and gas firm Capricorn Energy — formerly Sir Bill Gammell’s Cairn Energy — has accepted a £271m cash takeover offer from London-based Genel Energy.

The sale will mean the loss of another Scottish-headquartered company – and one that has had a prominent and entrepreneurial place in Scotland’s oil and gas exploration story. Bill Gammell’s company began in Castle Street in Edinburgh, as Cairn Petroleum, and was helped in the early years by future US President George W Bush. Cairn went on to discover significant pocket of oil in India in 2005, and latterly was exploring offshore oil deposits off Greenland, which is decided to abandon.

Capricorn, based in Lothian Road and with operations in Egypt and the UK North Sea, said the offer from Genel values each Capricorn share at $4.74, or £3.57. This comprises $3.75 in cash and an intended special dividend of $0.99.

Genel Energy is an oil producer with production assets in the Kurdistan region of Iraq, and exploration assets in Oman and Somaliland.

The offer represents a premium of 34 per cent to the closing price per Capricorn share of £2.66 on March 10, 2026, the day prior to the start of the Offer Period.

“As part of the post-completion review, Genel will assess the office footprint of the enlarged group, including Capricorn’s headquarters in Edinburgh, having regard to access to key stakeholders, operational requirements and the locations from which existing teams work,” said Capricorn.

“It is intended that immediately following completion of the acquisition, the enlarged group will be headquartered in London.”

Capricorn Energy CEO Randy Neely said: “Since my appointment three years ago, the team has delivered strongly against our strategic priorities – returning approximately US$600 million to shareholders, reducing costs, and maximising value from our Egyptian asset base through the recently signed merged concession, establishing a sustainable long-term business.

“However, Capricorn requires greater scale to materially improve trading liquidity. We believe the transaction with Genel crystallises the value created by Capricorn while providing shareholders with a clear and efficient exit.”

Genel Energy CEO Paul Weir said: “Today we announce a landmark transaction to acquire a leading oil and gas portfolio in Egypt – a move that delivers our strategic intent, reshapes our company’s growth trajectory, diversifies our portfolio of oil and gas fields and begins our role as a partner in Egypt’s energy future.

Before joining Genel, Weir who joined Genel in 2020 was head of operations and safety at Tullow Oil. Prior to that Paul spent 13 years at Talisman, where he was VP of Production & Exploration, leading operations in Malaysia.

“The acquisition of Capricorn Energy and its portfolio brings high‑quality assets, material reserves, and a talented local workforce that together create immediate scale and opportunity for further onward investment and growth,” he added.

“By applying our technical and operational capabilities to these assets, we will work with the operator to accelerate production optimisation, replace reserves, reduce unit costs, and capture significant near‑term cash flow while preserving optionality for future development.

“Equally important, this transaction commences the start of a relationship with and commitment to Egypt and its communities. We will work closely with government partners and host communities to ensure safe, environmentally responsible operations and to maximise local content and job creation.

“For our shareholders, the acquisition is expected to realise accretive cash flow and returns over the coming years. For our employees and those joining from the Capricorn team, it creates new opportunities to grow and to apply best practices across a larger, more diversified asset base.

“We enter this next chapter of further value creation with resolve and determination. Delivering on the promise of this transaction will require a high degree of expertise, rigorous execution, transparent engagement with stakeholders, and an unwavering commitment to safety and sustainability. I am confident that we will realise the full potential of these assets and create sustainable value for all our stakeholders.”

A recent achievement by Capricorn has been the consolidation of eight Egyptian concession agreements into a single merged Western Desert production sharing contract, which was formally ratified by the Egyptian House of Representatives at the end of Q1 2026 and came into effect following signing on 19 May 2026.

This was a significant milestone unlocking additional reserves and enhanced fiscal terms that should drive increased investment and cash flow, increasing our netback by around $5 at $80/bbl, positioning the company for improved free cash flow.