Story
Pharos Energy Stock Surges as Ratio Petroleum Takeover Advances
Summary
Shares in Pharos Energy surged after the company published its formal scheme document for the all-cash acquisition by Ratio Petroleum, setting a firm date for a shareholder vote and signaling the deal is proceeding as planned.
Shares in oil and gas firm Pharos Energy (PHAR.L) surged on Monday after the company took a significant step forward in its planned acquisition by Ratio Petroleum Energy LP. The publication of a formal Scheme Document has provided investors with a clear timeline and increased certainty, causing the stock to rally as it closes the gap toward the offer price.
Key Milestone Reached
Pharos published the official document outlining the terms of the recommended all-cash offer from Ratio Petroleum. This move marks a key procedural milestone, confirming that the acquisition is advancing on schedule.
Crucially, the company has now scheduled the required shareholder court and general meetings for August 17, 2026. The transaction is expected to be completed in the first half of 2027, according to the announcement.
Deal Terms and Shareholder Support
The acquisition terms entitle Pharos shareholders to a total value of up to 28 pence per share. This consideration is composed of several parts:
Ad- A cash payment of 23.0683 pence per share from Ratio Petroleum.
- A special dividend of 4.0 pence per share.
- The final fiscal year 2025 dividend of 0.9317 pence, which was paid in July.
The company's board has unanimously recommended that shareholders vote in favor of the scheme. Underscoring the high probability of approval, Pharos has already secured irrevocable undertakings to vote in favor of the deal from shareholders representing approximately 41.76% of the company's share capital.
Underlying Operational Strength
The deal's credibility is supported by Pharos's solid operational performance, detailed in a mid-July trading update. The company reported strong momentum in the first half of 2026, with group production averaging 5,650 barrels of oil equivalent per day (boepd), in line with full-year guidance.
Pharos also reported group revenue of $82 million and a growing cash balance of $45.2 million as of June 30, 2026. A significant reduction in its Egypt receivable balance has further strengthened the company's balance sheet, providing a solid financial foundation for the acquisition.
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