North Sea energy producer Serica Energy has officially withdrawn its bid to acquire Pharos Energy, conceding defeat after being outmaneuvered by a superior offer from Ratio Petroleum Energy. This development marks the conclusion of a competitive takeover battle for Pharos.
Serica Energy confirmed its decision not to pursue its offer further after Pharos’ board announced its endorsement of an enhanced, all-cash proposal from Ratio Petroleum Energy. This revised offer valued Pharos at 32.8183 pence per share, a figure that incorporated a 4 pence special dividend for shareholders. Earlier in July, Serica had presented a competing offer for Pharos, subsequently declaring that its final proposal of 32.6683 pence per share would not be increased.
Following Ratio Petroleum Energy’s improved offer, Pharos’ directors retracted their previous recommendation for the Serica bid. They have now unanimously advised their shareholders to back the rival deal from Ratio Petroleum Energy. Consequently, Serica has acknowledged its withdrawal, and the Takeover Panel has released the company from its obligation to complete the transaction. Pharos shareholders are now scheduled to cast their votes on the Ratio Petroleum Energy takeover at a Court Meeting and General Meeting slated for August 28th, with the company’s directors urging their unanimous support for the deal.
In a separate but related development within the North Sea, NEO NEXT+ Energy has successfully completed its acquisition of Deltic Energy. This £6.9 million deal became effective today, solidifying NEO NEXT+’s ownership of Deltic Energy’s assets. The terms for this recommended cash acquisition were initially agreed upon in May, receiving approval from Deltic shareholders the following month. Regulatory consent for the change of control was granted by the North Sea Transition Authority in July, and the High Court sanctioned the scheme of arrangement on Thursday.
Deltic Energy has confirmed that all conditions pertinent to the acquisition have been met, and its entire issued share capital is now under the ownership of NEO NEXT+. As a result, trading in Deltic shares on AIM was suspended from 7:30 am today, with their admission to the London Stock Exchange’s junior market anticipated to be canceled from 7:00 am on Monday. This acquisition integrates Deltic’s oil and gas interests under the umbrella of NEO NEXT+, an entity formed through the strategic combination of NEO Energy and Repsol Resources UK.
