Serica rejected the first two approaches, then submitted a counter-proposal which according to Kistos, would have given Serica’s shareholders a 72% interest in the combined group.
Kistos’ board declined that offer and has now written to Serica’s shareholders in an attempt to persuade them of the logic of merging the two companies’ portfolios.
Serica operates the Bruce gas-condensate complex in the UK northern North Sea, while Kistos has gas production interests in the Dutch North Sea.
Yesterday, the company confirmed its entry into the Laggan-Tormore area gas development west of Shetland.
Previously, Serica’s board has stated that it can see “industrial logic” in the merger.
Kistos claims a combination would create a leading listed North Sea independent, with about 86% of its reserves operated, 85% gas-weighted production, and with potential for growth, noting that its own management team has a track record of M&A execution and resource development.
In its latest statement, Serica’s board said it was considering its position, but there can be no certainty that an offer will be made, or as to the terms of any such offer.
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