Serica Energy to Acquire Pharos Energy in $194 Million Deal

Serica Energy has agreed to buy Pharos Energy in a cash transaction valued at about £145.7 million ($194.5 million). The offer includes a cash payment of 28.6683 pence per share plus a 4 pence special dividend, representing a 20.7% premium over the rival Ratio Petroleum bid and a 28.6% premium to Pharos' closing price prior to that offer. Approval from shareholders, the court and regulators in Vietnam and Egypt is required, with completion expected in the first half of 2027. The acquisition will expand Serica’s footprint into Vietnam and Egypt, increase its pro‑forma 2P reserves by 13% to 156.8 million barrels of oil equivalent and boost its projected 2026 production to roughly 70,000 boepd.

Analysts note that Serica, together with Harbour Energy, is among the cheapest oil stocks on the London market, trading at low price‑to‑earnings multiples and high free‑cash‑flow yields. The low valuation, combined with the strategic acquisition, underpins expectations of strong dividend yields and cash‑generating potential for investors.