Serica Energy’s Final $197 Million Bid for Pharos as Bidding War Intensifies
Overview of the Serica-Pharos Bidding War
Aug 10 (Reuters) - Serica Energy will not be raising its £145.7 million ($196.59 million) proposal for peer oil and gas producer Pharos Energy, the British company said on Monday, days after Israel's Ratio Petroleum tabled a higher takeover proposal.
Key Details on the Bidding War for Pharos
Here are some details on the bidding war for Egypt-focused Pharos:
Serica’s Final Offer
• Financial terms of the Serica Offer, tabled on July 26, are final and will not be increased or improved, Serica said, unless in certain circumstances, including another bid for Pharos.
Ratio Petroleum’s Counteroffer
• On Friday, Ratio sweetened its offer for Pharos, valuing its shares at 32.8 pence each, slightly higher than Serica's 32.67 pence each, prompting Pharos' board to unanimously withdraw its recommendation to its shareholders for the Serica offer to instead back Ratio.
Serica’s Strategic Focus
• "Serica 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," Serica said on Monday.
Industry Context
Dealmaking Trends and Market Drivers
• The proposals for Pharos come amid high levels of dealmaking among oil companies trying to diversify operations and helped by elevated oil prices since the start of the Iran war in late-February.
Other Recent M&A Activity
• On Friday, Kurdistan-focused DNO proposed to buy rival and partner Genel Energy, which is separately in pursuit of Capricorn Energy.($1 = 0.7411 pounds)
Reporting Credits
(Reporting by Prerna Bedi in Bengaluru; Editing by Harikrishnan Nair)
