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LONDON - Viaro Energy Limited announced Monday it has agreed to acquire AIM-quoted Deltic Energy Plc for approximately £6.9 million in a recommended all-cash transaction, offering shareholders 7.46 pence per share.
The offer represents a 36 percent premium to Deltic’s closing price of 5.50 pence on June 27, the last trading day before the announcement, and a 56 percent premium to the six-month volume weighted average price.
Deltic, which focuses on UK North Sea gas exploration, has secured unanimous board recommendation for the deal, which will be implemented through a court-sanctioned scheme of arrangement. The company’s directors, who hold approximately 0.26 percent of shares, have irrevocably committed to vote in favor of the transaction.
Viaro has also received irrevocable undertakings from other shareholders representing approximately 19 percent of Deltic’s issued share capital, including a 15.77 percent stake held by IPGL Limited.
As part of the agreement, Viaro Bidco will provide Deltic with a bridging loan of up to £2.7 million to ensure sufficient working capital before the acquisition completes.
Deltic’s board cited challenging market conditions, limited funding options, and uncertainty in the UK’s energy policy as key factors in their decision to recommend the offer. The company reported cash reserves of just £0.49 million as of May 31, 2025, and anticipated needing additional capital by July.
"Despite the difficult political and fiscal backdrop impacting the UK E&P industry over a number of years, the achievements of the Deltic team and the quality of our assets have been recognized by Viaro," said Andrew Nunn, CEO of Deltic, in a statement from the press release.
Viaro Energy, which entered the upstream oil and gas business in 2020, views Deltic’s license interests as offering significant synergies with its existing portfolio, particularly the Selene gas discovery which is expected to deliver first gas in early 2029.
The transaction is expected to complete in the fourth quarter of 2025, subject to shareholder and court approvals.
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