(Alliance News) - Serica Energy PLC and Kistos PLC on Tuesday said they do not intend to make offers for each other after both rejected approaches from the other.
Serica said it had not been possible to reach agreement with Kistos on a revised possible offer. Kistos, in its own statement, said it was "disappointed" that Serica "failed to engage meaningfully" over either Kistos's offer for Serica or the terms of Serica's offer for Kistos.
Kistos said it remains confident in its strategic direction and is focused on the delivery of its goals.
Serica 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. 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."
In mid-July, the companies revealed they had traded takeover offers, with each rejecting the other as they mulled combining to create a company that could rank within the FTSE 250 index. Later that month, Kistos sent a revised offer that, again, was rejected by Serica.
Shares in Serica closed flat at 367.86 pence in London on Tuesday, while Kistos rose 1.7% to 483.00p.
By Lucy Heming; lucyheming@alliancenews.com
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Serica Energy (SQZ)
Kistos Holdings (KIST)