EnQuest in talks for reverse takeover of Serica Energy

LONDON - EnQuest PLC confirmed today that it is in discussions with Serica Energy (LON:SQZ) plc regarding a potential all-share reverse takeover. While the conversations are ongoing, there is no certainty that an offer will be made, nor are the terms set.

This development follows a recent announcement by Serica Energy, identifying them as the target company under the City Code on Takeovers and Mergers. EnQuest, an independent oil and gas production company, has until 5 p.m. on April 4, 2025, to either announce a firm intention to propose an offer in line with the Code’s Rule 2.7 or to declare that it will not make an offer, at which point the statement will fall under Rule 2.8 of the Code. The deadline may be extended with permission from the Panel, as per Rule 2.6(c).

The terms of the potential transaction could change, with EnQuest reserving the right to offer different forms of consideration or alter the mix of consideration. Any adjustments to the proposal would require the consent of Serica’s Board or could be prompted by a third-party offer for Serica or certain other corporate actions by Serica.

Furthermore, should Serica pay out dividends or make other distributions to its shareholders after the date of this announcement, EnQuest may reduce the terms of the potential combination accordingly. However, any agreed return of capital to Serica shareholders conditional upon the completion of the combination would be exempt from this adjustment.

The discussions between the two companies are part of a broader trend in the energy sector where consolidation is often seen as a means to achieve greater efficiencies and market presence. The announcement was made by EnQuest’s Group Legal Manager, Dawood Ahmed, and is based on a press release statement. The market awaits further updates as both companies navigate the potential combination.

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