Serica Energy‘s recommended Serica Energy Pharos bid has been declared final at 32.6683 pence per share, comprising 28.6683 pence in cash plus a 4.0 pence special dividend, valuing the AIM-listed Egypt and Vietnam producer at £145.7 million. The declaration, made on 10 August 2026, means Serica cannot raise its offer except in limited circumstances.
Pharos Energy (LON: PHAR) shares closed at 24.8p on Friday, before the offer was declared final. Serica Energy (LON: SQZ) closed at 257.2p.
How the Serica Energy Pharos Bid Displaced Two Ratio Offers
The takeover contest has moved through three bids. Ratio Petroleum Energy first agreed to acquire Pharos on 24 June 2026 in an all-cash deal originally valued at £124.3 million, at 23.0683p per share in cash plus a 4p special dividend and a final dividend of 0.9317p. That final dividend was paid on 18 July.
Serica launched a competing offer on 26 July 2026, which prompted Ratio to raise its own bid to 28.0p in cash. Serica’s board-recommended offer at 28.6683p in cash then topped that, and the Pharos board switched its recommendation to Serica. Per a London Stock Exchange announcement, Ratio retains the right to match Serica’s offer.
The Serica Energy Pharos bid would diversify the North Sea producer into Vietnam and Egypt. Pharos produced 5,398 barrels of oil equivalent per day net in 2025, generating revenues of $114.6 million. Infill drilling is planned in Egypt.
New $750m Lending Facilities Back the Acquisition
Serica last week completed new six-year, senior secured Reserves Based Lending (RBL) facilities totalling $750 million, replacing an existing $525 million facility. The package comprises a $500 million secured revolving loan facility and a $250 million secured revolving letter of credit facility, according to Serica’s own RBL facility announcement.
The snippet had stated a $205 million letter of credit facility; Serica’s primary document gives the figure as $250 million.
The facilities are initially undrawn and require no amortisation payments until mid-2029, per Serica’s half-year results for the six months ended 30 June 2026. Net cash stood at $26 million at the end of June 2026.
The Serica Energy Pharos bid now rests on whether Ratio exercises its matching right. If Ratio does not respond, Pharos shareholders face a straightforward vote on Serica’s 32.6683p final terms.
