EnQuest’s proposed takeover of North Sea rival Serica Energy has potentially come closer as Serica files papers under the UK takeover code.
Serica provided details of its share capital, with the filing saying it has 393,568,408 ordinary shares of $0.10 each trading on the Alternative Investment Market (AIM).
The statement added that the company holds 2,041,985 of these shares in the treasury.
The papers were filed in accordance with the code on takeovers and mergers.
Serica Energy and EnQuest opened discussions earlier this month as they look to combine the companies through a reverse takeover.
Although discussions are ongoing, the transaction will likely be structured as an all share offer by EnQuest for Serica by way of a reverse takeover under the UK Listing Rules.
This would likely see existing Serica shareholders receiving a return of capital once the transaction is complete, who would then hold a majority of the shares in the enlarged company.
Shares would then be listed on the equity shares (commercial companies) (ESCC) of the London Stock Exchange.
A previous Serica Energy statement noted that there is currently no certainty either that an offer will be made nor as to the terms on which such an offer will be made.
The deal, Serica stated, will help create a combined company with greater opportunities for scale and diversification and a stronger platform for further growth.
EnQuest will need to make a firm intention of an offer for Serica or that it does not intend to make such an offer by 4 April 2025, though this deadline can be extended.
EnQuest’s 2024 full-year results saw the company’s average production of 40,736 boe per day, while Serica’s assets produced around 34,600 boe per day.
Among Serica’s assets are the Bruce, Keith and Rhum fields, and fields in the Triton area. It is also a stakeholder in the Buchan Horst venture.
Currently, Serica is weighing up its options on drilling campaigns for Bruce, Keith and Rhum as it completes a five well campaign on Triton.
Serica boss Chris Cox has previously expressed an appetite for UK merger and acquisition (M&A) deals.
The independent operator’s CEO told Energy Voice, before news of the potential EnQuest deal, that he is confident in UK deals as “the fiscal regime in the North Sea can’t really get any worse than it is right now”.
