Israel's Ratio Petroleum sweetens Pharos Energy offer, outbidding Serica
Israel's Ratio Petroleum sweetens Pharos Energy offer, outbidding Serica Aug 7 (Reuters) - Israel-based Ratio Petroleum Energy RTPTp.TA raised its takeover bid for Pharos Energy PHARP.L to about £146.4 million ($196.97 million) on Friday, outbidding rival oil producer Serica Energy SQZ.L and winning back the board's recommendation.
The increased proposal values Pharos shares at 32.8 pence each and is a smidge higher than Serica's proposal of 32.67 pence apiece.
The bid — comprising 28.8 pence in cash plus a special dividend of 4 pence — represents a 29.2% premium to Pharos' closing price of 25.4 pence on June 23, the last trading day before Ratio's original offer was announced.
Ratio's improved proposal deepens a bidding war for Pharos Energy, a London-listed oil and gas producer with assets in Vietnam and Egypt.
Serica launched a competing £145.7 million cash proposal in late July.
Ratio said its experience obtaining regulatory approvals across international regimes gave it an edge over Serica on deal certainty.
The Pharos board, advised by Rothschild & Co, unanimously withdrew its recommendation of the Serica offer and now backs Ratio's increased bid, deeming it fair and reasonable.
Serica Energy did not immediately respond to a Reuters request for comment.
($1 = 0.7433 pounds)
(Reporting by Yamini Kalia in Bengaluru; Editing by Janane Venkatraman)