Serica board rejects Kistos merger bid
The board of UK gas producer Serica Energy has rejected a merger bid from energy investor Kistos that priced the company at £1.04bn ($1.23bn), Kistos said on July 12.
The cash-and-stock bid offered Serica shareholders 0.2932 new shares in Kistos and £2.46 for every share. Kistos noted that the offer represented a 25% premium to the last closing price of Serica shares of £3.05 apiece.
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Kistos made two more offers in May and June. The company said the combined entity created from the merger would be a leading North Sea independent, with a market capitalisation of over £1.8bn and options for further organic and non-organic growth.
Serica's main assets are the Bruce, Keith and Rhum gas fields in the north North Sea, and the Columbus and Erskine deposits in the central North Sea.
Serica has not commented on the offer. But Kistos said that the company had stated that its board "can see industrial logic in combining the portfolios of the two companies," but had nevertheless rejected the bid. Kistos urged Serica's board "to engage in constructive discussions" on the proposed merger.
Kistos snapped up the Dutch assets of Tulip Oil last year, and also bought TotalEnergies' 20% stake in the Greater Laggan gas cluster west of the Shetland Islands this month.