Ratio Petroleum sweetens Pharos Energy offer, outbids Serica
Ratio Petroleum raises takeover bid for Pharos Energy to £146.4 million, outbidding Serica Energy and regaining board recommendation.
Israel's Ratio Petroleum Energy has increased its takeover offer for London-listed Pharos Energy to approximately £146.4 million, edging out rival bidder Serica Energy and securing the target company's board recommendation once again.
The revised proposal values Pharos shares at 32.8 pence each, slightly above Serica's offer of 32.67 pence per share. The bid is structured as 28.8 pence in cash plus a special dividend of 4 pence per share, representing a 29.2% premium over Pharos' closing price of 25.4 pence on June 23, the last trading day before Ratio's initial offer was announced.
This improved bid intensifies a takeover contest for Pharos, an oil and gas producer with operations in Vietnam and Egypt. Serica had entered the fray in late July with a £145.7 million all-cash proposal.
Ratio argued that its track record in securing regulatory approvals across various international jurisdictions gives it an advantage over Serica in terms of deal certainty. The Pharos board, advised by Rothschild & Co, has unanimously withdrawn its backing for the Serica offer and now supports Ratio's increased bid, describing it as fair and reasonable.
Serica Energy had not responded to requests for comment at the time of reporting.