Serica Energy has declared its £145.7 million offer for Pharos Energy final, choosing not to raise its bid after Ratio Petroleum Energy increased its competing proposal.
Serica is offering Pharos shareholders 28.6683 pence in cash plus a 4 pence special dividend for each share, giving a total value of 32.6683 pence per share. The company first announced its recommended offer on 26 July 2026.
The position changed on 7 August when Ratio increased its proposal to 32.8 pence per Pharos share. The higher offer is only slightly above Serica’s terms, but it was enough for the Pharos board to withdraw its recommendation of the Serica deal and back Ratio instead.
Ratio has also secured irrevocable undertakings covering approximately 41.76% of Pharos Energy’s issued share capital, strengthening its position in the takeover process.
Serica has responded by holding its price rather than entering a bidding contest. The company said its financial terms are final and will not be increased or improved, except in limited circumstances permitted under takeover rules.
Serica had identified Pharos as an acquisition opportunity that could expand and diversify its asset base, but it is not prepared to increase the price simply to remain the leading bidder.
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.
