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Serica Energy PLC and Kistos PLC on Monday both confirmed that Kistos had sent Serica a revised non-binding proposal regarding a potential takeover that was unanimously rejected by Serica's board.
London-based oil & gas company Serica noted that the new offer reduced the cash element of the original offer by 33 pence per share.
Further, it increased its shareholders' share of the combined company to roughly 58% from 50%.
The revised offer proposed an offer value of 425 pence per Serica share, an 11% increase to the headline value to Serica shareholders compared to the first offer, it said.
However, it would result in a change of leadership, as the offer suggested that Kistos' Chair Andrew Austin should become chief executive of the combined company.
As a consequence, Serica unanimously rejected the offer by Kistos.
‘The Kistos revised possible offer would result in a change in the Serica leadership during a crucial period for the industry,’ the company explained.
In addition, it stated that the offer ‘significantly’ undervalued it.
‘The Serica board strongly believes that the revised Kistos possible offer does not reflect the underlying value of Serica's existing core producing oil and gas assets,’ it added.
London-based investment firm Kistos said it offered 0.4000 new Kistos shares, as well as cash of 213p through the revised offer proposal.
This reflects a 36% increase in shares and a 13% decrease in cash from its original offer of 0.2932 new Kistos shares and 246p in cash for each Serica share.
Kistos added that it continues ‘to urge’ Serica shareholders to encourage the board to engage in constructive discussions.
Earlier this month, Kistos and Serica Energy revealed they have traded takeover offers, with each rejecting the other.
Serica Energy shares were trading 2.7% higher at 366.50 pence each in London on Monday morning. Kistos shares were down 0.2% at 529.00 pence.
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