Britain's Serica Energy agrees to buy Pharos in $194 million cash deal
Britain's Serica Energy agrees to buy Pharos in $194 million cash deal July 26 (Reuters) - Britain's Serica Energy SQZ.L said on Sunday it had agreed to acquire fellow oil and gas producer Pharos Energy PHARP.L in a cash deal valued at about £145.7 million ($194.07 million).
Under the terms of the deal, Pharos shareholders will receive a total of 32.67 pence per share in cash, including a special dividend.
Last month, Israel-based Ratio Petroleum Energy RTPTp.TA agreed to buy Pharos in an all-cash deal valued at £124.3 million.
Pharos' board unanimously withdrew its recommendation for Ratio's bid and said it would instead recommend Serica's offer, describing it as a superior proposal that delivers greater certainty of completion.
The company said it would adjourn shareholder meetings scheduled for August 17 to consider Ratio's offer after withdrawing its recommendation for the bid.
Serica said the acquisition would expand its operations into Vietnam and Egypt. The companies expect the transaction to complete in the first half of 2027, subject to shareholder, court and regulatory approvals.
($1 = 0.7508 pounds)
(Reporting by Devika Nair in Bengaluru; Editing by Nia Williams)