Serica Energy rejected a revised merger proposal valuing it at nearly 1.2 billion pounds (US$1.4 billion) from energy investment firm Kistos, saying it undervalues the British oil and gas group’s core assets.
Kistos on July 25 disclosed details of the proposal, which comprised a cash-and-stock offer of 425 pence per share, representing a 19% premium to Serica’s last closing price.
It also proposed that Tony Craven Walker, Serica’s chairman, take on the same role at the combined firm, and that Andrew Austin, Kistos’ chairman, assume the role of CEO.
The offer “results in Serica shareholders funding much of the purported premium themselves: Kistos' market capitalization is significantly smaller than Serica’s,” Serica, which produces around 5% of Britain's gas supplies, said.
“The [Serica] board reiterates its position that it will not recommend any deal on terms which it believes are unattractive to its shareholders and wider stakeholders.”
Kistos, which has a market value of 439.2 million pounds compared with Serica’s 970.8 million, had earlier made public an offer of 382p for each share of Serica, which was rejected by the firm’s board in June.
Serica then approached Kistos on July 1 with a cash-and-stock offer of 483p per Kistos share, which was rejected by the investment company’s board.
The July 25 announcement comes as a blow to Kistos as it looks to strengthen its foothold in the North Sea.
Shares in Kistos fell 2.8%, while Serica was trading 1.8% higher.
(US$1 = 0.8356 pounds)
Recommended Reading
Trump Says He Will Double Tariffs on Canadian Metals to 50%
2025-03-11 - President Trump said he would double his tariffs on Canadian steel and aluminum products in response to Ontario placing a 25% tariff on electricity supplied to the U.S.
ADNOC Contracts Flowserve to Supply Tech for CCS, EOR Project
2025-01-14 - Abu Dhabi National Oil Co. has contracted Flowserve Corp. for the supply of dry gas seal systems for EOR and a carbon capture project at its Habshan facility in the Middle East.
Enchanted Rock’s Microgrids Pull Double Duty with Both Backup, Grid Support
2025-02-21 - Enchanted Rock’s natural gas-fired generators can start up with just a few seconds of notice to easily provide support for a stressed ERCOT grid.
McDermott Completes Project for Shell Offshore in Gulf of Mexico
2025-03-05 - McDermott installed about 40 miles of pipelines and connections to Shell’s Whale platform.
Equinor’s Norwegian Troll Gas Field Breaks Production Record
2025-01-06 - Equinor says its 2024 North Sea production hit a new high thanks to equipment upgrades and little downtime.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.