Capricorn Energy ditches Tullow deal in favour of NewMed

Capricorn announced in June that it had agreed to be bought by Tullow in all-share deal. Under the terms of the transaction, Capricorn shareholders would have been be entitled to receive 3.8068 new Tullow shares for each of their shares.

However, Capricorn said on Thursday that under the terms of the new deal agreed with NewMed, its shareholders will own 10.3% of the enlarged group and receive a special dividend of $620m, equivalent to £1.72 a share.

Capricorn chair Nicoletta Giadrossi said: "The board has engaged in a robust and dynamic process to evaluate options for Capricorn and considered a broad range of external factors and market conditions.

"The combination with NewMed and a cash special dividend represent the delivery of significant value for Capricorn shareholders. We believe this is a compelling transaction which combines near term value realisation with ongoing participation and value creation in a world class gas company."

At 1105 BST, Capricorn shares were up 4.2% at 249.60p.