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Serica Energy Stays Firm on Financial Terms to Acquire Pharos Energy

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UK-based independent oil and gas company Serica Energy on Monday said that its financial terms for the proposed acquisition of Pharos Energy disclosed last month are final and will not be increased.

The statement follows a revised proposal for the UK-based target by Ratio Petroleum Energy, disclosed on Aug. 7, and which secured irrevocable undertakings for about 41.76% of Pharos' issued share capital.

On July 26, the company said that Serica and Pharos have agreed on the terms of a recommended deal as per which it will acquire all of Pharos' issued and to-be-issued shares, with the transaction expected to proceed through a scheme of arrangement.

Pharos' board has withdrawn its support for Ratio Petroleum's offer and will recommend Serica's deal, while shareholder meetings on the Ratio offer have been postponed, as per the statement issued then.

According to the deal terms, Pharos shareholders will receive 28.6683 pence in cash plus a 4 pence special dividend per share for a total of 32.6683 pence per share, valuing Pharos at about 145.7 million British pounds ($196.7 million). Eligible shareholders will also retain the 0.9317 pence final dividend paid in July for the financial year ended Dec. 31 2025.

In its statement on Monday, Serica said that it retains the right to increase the value of its offer if another third party, other than Ratio, announces an offer or possible offer for Pharos, including a partial offer, or if the UK Takeover Panel consents in wholly exceptional circumstances.

"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," it added.

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