Serica Energy Rejects Kistos’ Revised $1.4 Billion Merger Offer

Kistos, which has a market value of 439.2 million pounds compared with Serica’s 970.8 million, had earlier made public an offer of 382p for each share of Serica, which was rejected by the firm’s board in June.

Eva Mathews, Reuters

Serica Energy rejected a revised merger proposal valuing it at nearly 1.2 billion pounds (US$1.4 billion) from energy investment firm Kistos, saying it undervalues the British oil and gas group’s core assets.

Kistos on July 25 disclosed details of the proposal, which comprised a cash-and-stock offer of 425 pence per share, representing a 19% premium to Serica’s last closing price.

It also proposed that Tony Craven Walker, Serica’s chairman, take on the same role at the combined firm, and that Andrew Austin, Kistos’ chairman, assume the role of CEO.

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