Ratio Petroleum Energy has strengthened its position to acquire Pharos Energy after increasing its offer and seeing rival bidder Serica Energy withdraw from the process.
The development leaves Ratio as the clear bidder for Pharos and its producing oil and gas interests in Egypt and Vietnam, subject to completion of the agreed transaction.
Ratio had originally reached agreement to acquire Pharos in June, with an offer worth up to 28p per share. Serica later entered the process with a higher proposal, creating a competitive situation for the business. Ratio responded by improving its terms and reached a revised agreement with Pharos on 7 August. Serica subsequently decided not to increase its own proposal and formally ended its offer on 13 August.
Pharos brings producing assets in both Egypt and Vietnam, giving Ratio exposure to established operations across two international markets. The portfolio also includes further development and exploration opportunities, creating potential for continued activity beyond current production.
Pharos also brings financial flexibility. The company had a debt-free balance sheet and approximately $45 million of cash as at 30 June 2026, adding another attractive element to the proposed combination. Its asset base includes opportunities for infill activity in Vietnam and development drilling in Egypt, alongside exploration acreage in Vietnam.
For Pharos, the transaction offers a route into a larger ownership structure while keeping its producing assets, development opportunities and exploration exposure at the centre of the investment case.
Pharos Energy Plc (LON:PHAR) is an independent energy company with a focus on delivering long-term sustainable value for all stakeholders through regular cash returns and organic growth, underpinned by a robust cash flow and resilient balance sheet.
