By Nicholas Earl
The possibility of a proposed merger between Kistos and Serica Energy (Serica) appears to have ended, with neither party able to launch a convincing takeover offer of the other company.
Kistos has confirmed it “will not make a firm offer Serica,” bringing an end to a series of bids between both parties since May.
It has criticised the North Sea oil and gas operator’s board for failing to “engage meaningfully” with its takeover bids and Serica’s own offer for Kistos.
The company argued this was especially disappointing, as it believed both boards understood the “industrial logic in combining the portfolios of the two companies.”
In a statement to the London Stock Exchange, Kistos said: “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.”
Meanwhile, Serica has confirmed it will not be making another bid for Kistos.
It argued it has not been possible to reach agreement with Kistos on the terms or structure of a revised deal between both companies.
It said: “Serica will continue to proactively seek 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.”
Kistos is headed by North Sea dealmaker Andrew Austin, and was set up in 2020 after he sold his previous company RockRose Energy for £250m.
The firm has a market value of £439.2m.
Serica is one of the UK’s leading mid-tier North Sea energy firms – with five fields in the North Sea producing 22,000 barrels of oil equivalent per day.
It has a market value of £970.8m, and currently operates the Bruce, Keith and Rhum producing assets in the UK Northern North Sea alongside Columbus Field, and is a partner in the Erskine Field in the UK Central North Sea.
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