News Oil & Gas

Serica rejects £1bn merger offer from Kistos

Serica Energy plc said it had rejected a proposed £1bn merger comprising cash and shares of its North Sea oil and gas assets with smaller rival Kistos plc.

Uncertain: Serica said it was unclear that an offer would be made (Serica Energy)

OFFERS

“The proposed terms are the same as the terms outlined in a possible non-binding offer made by Kistos on 24 May 2022 that was rejected by the Serica board on 1 June 2022,” said Serica in a statement.

“Serica proactively considers its strategic options and confirms that on 1 July 2022 it made a non-binding cash and share offer for the entire issued and to be issued share capital of Kistos.

“On 8 July 2022 the indicative offer was rejected by the board of Kistos.

“Serica is considering its position.

“There can be no certainty that an offer will be made, or as to the terms of any such offer.”

Serica said it would make a further statement as appropriate and “strongly advised” shareholders not to take any action.

KISTOS

Executive chairman Andrew Austin established investment company Kistos in 2020.

It became an operator after acquiring Dutch oil and gas assets in 2021.