London-listed oil and gas company Serinus Energy has signed a takeover agreement worth around £5.1m with New York-based broker dealer and specialist investment bank Xtellus Capital Partners.
The acquisition will be implemented through a court-sanctioned scheme of arrangement under Article 125 of the Companies (Jersey) Law 1991.
Serinus Energy primarily operates in Tunisia and Romania. The company seeks to enhance shareholder value by increasing oil and gas production via the efficient allocation of capital.
Currently, the company holds three Tunisia concessions that include a portfolio of development and exploration assets.
Serinus currently produces oil and gas in Tunisia via several working interests in two of the three oil and gas concessions.
In Romania, Serinus is deemed to have a 100% working interest in the Satu Mare Concession, one of the largest exploration blocks in the country, situated on a prolific oil and gas trend in the Eastern Pannonian Basin.
Under the terms of the agreement, Serinus shareholders will receive 3.40 pence in cash for each share held.
Xtellus reserves the right to adjust the acquisition price if any dividends or distributions are declared before the acquisition’s effective date. In such cases, Serinus shareholders will retain any declared dividends or distributions.
Serinus has faced challenges in gaining market recognition, with its shares trading at a depressed price.
The company also incurs significant costs maintaining its listing on AIM and the WSE, with limited capital access benefits.
Xtellus believes that Serinus would benefit from becoming a private entity with access to its capital resources, enabling it to pursue opportunities beyond its current reach.
The acquisition provides Serinus shareholders with an immediate cash realisation at a premium, despite the limited liquidity of Serinus shares.
“Serinus Energy receives takeover offer from Xtellus Capital Partners” was originally created and published by Offshore Technology, a GlobalData owned brand.
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