Pinsent Masons advises Ratio Petroleum on £124 million acquisition of Pharos Energy

According to the terms of the acquisition, which is intended to take effect by way of scheme of arrangement, Pharos Energy shareholders will receive up to 28 pence per share. Subject to shareholder approval and regulatory clearances in Egypt and Vietnam, the transaction will complete in the first half of 2027.

Ratio Petroleum is a leading international energy business partnership, working with some of the world’s leading energy companies. Focused on regions with very significant exploration and development potential, the company has traded on the leading indices of the Tel Aviv Stock Exchange since 2017.

Pharos Energy is an independent energy company which is listed on the main market of the London Stock Exchange. The business focuses on delivering sustainable growth with a portfolio of production, development and exploration assets in Vietnam and Egypt. Its stated purpose is to support the development and prosperity of the countries where it works, in line with recognised social and environmental practices.

Ratio Petroleum has secured irrevocable undertakings to support the transaction from shareholders representing nearly 42 per cent of Pharos Energy’s share capital, as well as backing from the board.

The Pinsent Masons team was led by Rosalie Chadwick, partner and global head of oil & gas, supported by corporate managing senior associate Ailie Isdale and corporate legal director Megan Thurman.

Rosalie commented, “This acquisition is a fantastic deal for Ratio Petroleum. Together, the two companies will form a strong exploration and production business with a platform for future value growth.”

The transaction follows Pinsent Masons advising on a number of recent significant energy transactions, including Drax’s £548 million recommended cash offer for Bluefield Solar Income Fund and NEO Next+’s recommended cash takeover of AIM-listed Deltic Energy Plc.