Serica Energy plc and Kistos plc today confirmed they would not make an offer to merge as one North Sea oil and gas company.
REJECTIONS
Serica said that on 12 July, Kistos rejected a possible offer from the company made on 8 July 2022.
Serica added that subsequently it had been impossible to reach agreement with Kistos on the terms or structure of a revised possible offer.
In response, Kistos said it was “disappointed” that Serica had “failed to engage meaningfully either with respect to Kistos’ proposed offer for Serica or the terms of Serica’s offer for Kistos”.
Kistos added it would not make a firm offer for Serica.
SERICA
Serica added it would continue to seek proactively opportunities to utilise 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.”
KISTOS
Kistos said that it remained confident in its “strategic direction and positioning as an independent North Sea gas champion and proactive consolidator in the sector”.
“The Kistos board remains focused on delivery of Kistos’ strategic goals.
“The Kistos board will therefore continue to pursue other paths to deliver further on those goals, with the objective of enhancing shareholder value and driving scale and consolidation, as it has successfully done since the company’s inception in 2020.”