Serica Energy PLC (AIM:SQZ) has ruled out raising its 32.6683p-a-share offer for Pharos Energy (LSE:PHAR), holding its ground after rival bidder Ratio Petroleum Energy LP increased its proposal.
Serica’s offer comprises 28.6683p in cash plus a 4.0p special dividend. The company noted that Ratio, which announced its increased offer on Friday, has secured irrevocable undertakings representing around 41.76% of Pharos’ issued share capital.
Serica said its decision reflected a “highly disciplined approach to M&A”, confirming that the financial terms are final and will not be increased. The usual limited exceptions apply, including if another third party enters the contest or the Takeover Panel gives consent in exceptional circumstances.
The North Sea producer added that it continues to evaluate a pipeline of other opportunities in the UK North Sea and elsewhere as it pursues its strategy.
