(Reuters) -UK’s Serica Energy said on Friday that it is intalks regarding a possible combination with EnQuest as the London-listed companies target increased scale and diversification.
Shares in Serica and EnQuest were trading 9.4% and 5.5% higher, respectively, by 0914 GMT.
Serica said the potential deal will be structured as an all-share offer by EnQuest, and will involve a return of capital to existing Serica shareholders.
Serica shareholders would hold a majority of the shares in the combined company with shares listed on the ESCC market of the London Stock Exchange, Serica said in a statement.
EnQuest has time until 5 p.m. UKT on April 4 to make a firm offer for Serica or walk away.
(Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Mrigank Dhaniwala)
