Pharos Energy supports fresh takeover offer by Ratio, away from Serica

Pharos Energy PLC on Friday said it is recommending a fresh takeover approach from Ratio Petroleum Energy LP, as it withdrew its support for a takeover by Serica Energy PLC, a London-based oil and gas producer.

Pharos Energy has assets in Vietnam and Egypt.

Pharos Energy in late June had recommended a takeover by Ratio Petroleum, but in late July switched to recommending an approach by Serica Energy.

The recommended takeover offer by Tel Aviv-based Ratio Petroleum values Pharos Energy 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.

Pharos Energy shares rose 7.6% to 33.90p each on Friday morning in London, while Serica Energy shares fell 1.8% to 227.78p each.

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