No Offer For Kistos From Serica Energy

No Offer For Kistos From Serica Energy
Serica Energy has made a decision not to make an offer for the entire and to be issued share capital of Kistos.

Serica Energy has informed it does not intend to make an offer for the entire and to be issued share capital of Kistos. Early last month, Kistos first rejected a possible offer from the company. Subsequently, it has not been possible to reach an agreement with Kistos on the terms or structure of a revised possible offer.

Near the end of July, Serica unveiled that Kistos had made an improved offer to acquire Serica’s share capital after initially being rejected in May. However, it was rejected by the Serica board because it undervalues the company and that Serica shareholders would end up funding much of the purported premium themselves.

Serica then said that the Kistos Revised Possible Offer reduces the cash element of the offer by 33 pence per share and increases Serica shareholders’ share of the combined entity from approximately 50 percent to approximately 58 percent compared to the first offer that Kistos submitted to the company on 24 May.

Serica said in its latest statement that it will continue to proactively seek opportunities to utilize its strong balance sheet and operating capability to invest in its existing assets and diversify its production portfolio through mergers and acquisitions.

The Serica board will maintain a balanced approach to deploying capital, including further capital returns while factoring in the requirements for the ongoing business and opportunities for profitable asset and corporate deals.

Any change to Serica’s decision depends on a potential agreement with the board of directors of Kistos, a third party making an offer for the company, or any material change of circumstances, as determined by the takeover panel.

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