Statement of intention not to make an offer for Kistos plc


Kistos walks away from bid to acquire North Sea's Serica Energy. (Credit: C Morrison from Pixabay)

Further to the announcement made by Serica Energy plc (“Serica”) in relation to a possible offer by Serica for the entire issued and to be issued share capital of Kistos plc (“Kistos”), Serica confirms that it does not intend to make an offer for Kistos.

Kistos announced on 12 July 2022 that it had rejected a possible offer from Serica on 8 July 2022. Subsequently it has not been possible to reach agreement with Kistos on the terms or structure of a revised possible offer.

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. The Serica board will maintain a balanced approach to deploying capital, including further capital returns, while factoring in the requirements for the ongoing business and opportunities for profitable asset and corporate deals.

This is a statement to which Rule 2.8 of the Code applies.

Under Note 2 on Rule 2.8 of the Code, Serica reserves the right to set the restrictions in Rule 2.8 aside in the following circumstances:

a. with the agreement of the board of directors of Kistos;

b. if a third party announces a firm intention to make an offer for Kistos;

c. if Kistos announces a Rule 9 waiver (see Note 1 of the Notes on Dispensations from Rule 9) or a reverse takeover (as defined in the Code); and

d. if there has been a material change of circumstances (as determined by the Takeover Panel).

Source: Company Press Release