Serica Energy said it is sticking to its existing offer for Pharos Energy despite bid rival Ratio Petroleum increasing its proposed price.
On Friday, Vietnam and Egypt focused Pharos Energy withdrew its support for Serica’s £145.7 million cash offer and is recommending a revised takeover approach from Ratio.
The recommended takeover offer by Tel Aviv-based Ratio values Pharos at £146.4 million, around 32.82 pence per share, or 0.5% more than Serica Energy’s offer announced in late July, valuing Pharos Energy at 32.67p, or £145.7 million.
Ratio’s initial approach in late June had valued Pharos Energy at 28p each, around £124.3 million.
Under Ratio’s new offer, Pharos Energy shareholders would receive about 28.82p in cash, plus 4.0p in cash per Pharos Share via a special dividend to be paid from Pharos’s existing cash resources.
Serica has this morning stated that it “retains a highly disciplined approach to M&A” and the financial terms of its offer of 32.6683p per Pharos share, comprised of 28.6683p in cash and 4p in cash by way of a special dividend are final and will not be increased.
It said it continues to rigorously evaluate a pipeline of opportunities, both in the UK North Sea and other areas in which the Company can successfully deliver its strategy.
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