Pharos Energy stands by Ratio deal as Serica Energy pulls out

Serica Energy PLC has confirmed that it will not proceed with its offer for Pharos Energy PLC, which has instead favoured a bid from Ratio Petroleum Energy LP.

Pharos and Tel Aviv-based Ratio had on Friday last week announced their agreement on the latter's recommended increased offer of 28.82 pence per Pharos share, and 4.0p per share through a special dividend.

The improved offer therefore values Pharos, a London-based energy company with assets in Vietnam and Egypt, at 32.82p per share or £146.4 million.

Its previous bid, in late June, had valued it at 28p per share, around £124.3 million.

London-based oil and gas producer Serica in late July announced a competing offer valuing Pharos at 32.67p per share, or £145.7 million.

Pharos had initially accepted this deal, but withdrew its support after Ratio announced its improved offer.

Serica then stated on Monday that its offer was final and would not be increased, before both companies confirmed on Thursday that it would not proceed with this offer.

Serica, which has a market capitalisation of £938.4 million, was down 3.6% at 237.00 pence per share on Thursday afternoon in London. Pharos shares were down 2.0% at 30.00p, for a market cap of £126.3 million.

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