Serica Energy (AIM:SQZ) confirmed it will not proceed with its final offer for Pharos Energy, ending a takeover pursuit that had valued each Pharos share at 32.6683p.
The North Sea oil and gas producer's decision follows Pharos's move on 7 August to back an increased cash offer from Ratio Petroleum Energy LP, which prompted the Pharos board to unanimously withdraw its recommendation of Serica's bid.
Serica had declared its 32.6683p offer, made up of 28.6683p in cash and a 4.0p special dividend, final on 10 August, ruling out any improvement.
With Pharos shareholders now steered toward the Ratio deal, Serica told Pharos it no longer wished to proceed, and Pharos consented to Serica's release from its obligations under the Takeover Code.
The termination leaves Ratio's increased cash offer as the recommended path forward for Pharos shareholders, who are set to vote on the deal at forthcoming shareholder meetings.
News Intelligence what this means for the company
Serica Energy has withdrawn its 32.6683p-per-share bid for Pharos Energy after Pharos's board switched its recommendation to a higher cash offer from Ratio Petroleum on 7 August. Serica had declared its offer final on 10 August and will now face a 12-month bar on making a fresh approach without Takeover Panel consent. The failed pursuit ends a deal that would have added 13% to Serica's pro forma 2P reserves, removing a material growth lever the company had pursued.
- Ratio Petroleum's offer is now the path forward for Pharos shareholders, pending their vote at forthcoming meetings.
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