Israel's Ratio Petroleum sweetens Pharos Energy offer, outbidding Serica (updated)
UPDATE 1-Israel's Ratio Petroleum sweetens Pharos Energy offer, outbidding Serica Adds Serica's response in bullet 4
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, which launched a competing £145.7 million cash proposal in late July, said it would not be commenting directly on Pharos, while it added that it will continue to rigorously evaluate a pipeline of opportunities, both in the UK North Sea and other areas.
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.
($1 = 0.7433 pounds)
(Reporting by Yamini Kalia in Bengaluru; Editing by Janane Venkatraman)
((Yamini.Kalia@thomsonreuters.com;))