Serica strikes agreement to acquire Pharos Energy

27th Jul 2026 13:33

(Sharecast News) - Serica Energy announced an agreement to acquire Pharos Energy in a cash deal valuing its issued and to be issued share capital at about £145.7m on Monday.

Pharos shareholders will receive 28.6683p a share in cash plus a 4p special dividend, giving a total value of 32.6683p a share, or 33.6p including the previously paid 2025 final dividend.

The AIM-traded firm said the offer represents a 28.6% premium to Pharos' undisturbed share price and is 20% above the total value of Ratio's competing offer.

Pharos withdrew its recommendation of the Ratio bid and said it would unanimously recommend Serica's proposal.

Serica said the acquisition would add production in Vietnam and Egypt, increase pro forma 2P reserves by 13% to 156.8m barrels of oil equivalent and lift 2C resources by 15% to 129.4m barrels, with combined exit production expected at about 70,000 barrels of oil equivalent per day in 2026.

Completion is expected in the first half of 2027, subject to shareholder, court and regulatory approvals.

At 1155 BST, shares in Serica Energy were down 5.37% at 243.4p.

Reporting by Josh White for Sharecast.com.

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