Adds deal details in paragraphs 2-3 and background in paragraph 4

July 16 (Reuters) - Ireland's DCC DCC.L said on Thursday that a consortium of KKR KKR.N and Energy Capital Partners had submitted an improved takeover proposal, valuing the energy distributor at £67.97 per share, or £5.81 billion ($7.86 billion).

The proposal retains cash consideration of £65.25 per share and a proposed final dividend of £1.47 apiece included in an earlier offer, and adds a potential payment of up to £1.25 linked to proceeds from the sale of the DCC Nexora technology unit.

Following the revised bid, the Irish takeover panel extended the deadline for the consortium to make a firm offer to July 27, DCC said.

In April, DCC rejected the consortium's initial £4.95 billion proposal, citing that it undervalued the company. KKR and Energy Capital returned in June with a sweetened offer valuing DCC at £66.72 per share, which the company indicated it would be willing to recommend to shareholders.

($1 = 0.7389 pounds)