UPDATE: Serica Energy says offer final after Pharos supports Ratio bid

Serica Energy PLC on Monday said its takeover offer for Pharos Energy PLC is final and won't be raised.

The statement by Serica came after Pharos on Friday said it recommends a fresh takeover approach from Ratio Petroleum Energy LP and withdraws its support for the offer from Serica.

Pharos Energy has assets in Vietnam and Egypt. Serica is a London-based oil and gas producer in the UK North Sea, while Ratio is Tel Aviv-based.

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

The recommended takeover offer by 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 will receive 28.82p in cash, plus 4.0p in cash per Pharos Share via a special dividend to be paid from Pharos's own cash resources.

Pharos Energy shares were down 4.8% to 31.90p each on Monday morning in London, while Serica Energy shares were up 1.6% to 233.32p each.

The Ratio offer has support from holders of 41.8% of Pharos shares

Serica on Monday said it takes a "highly disciplined approach to M&A" and therefore won't increase its offer for Pharos.

"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," the company said.

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