LONDON (ShareCast) - (Sharecast News) - Deltic Energy agreed to a recommended cash offer from Rockrose Energy, a subsidiary of Viaro Energy, it announced on Monday, in a deal valuing the company at £6.9m.
Under the terms of the acquisition, Deltic shareholders would receive 7.46p per share in cash, representing a 36% premium to the closing price on 27 June.

The AIM-traded firm said the deal would be implemented via a court-sanctioned scheme of arrangement.

Viaro had also agreed to provide Deltic with a £2.7m bridging loan to support working capital ahead of completion.

The acquisition would deliver a premium of 34% over the one-month average share price, 38% over the three-month average, and 56% over the six-month average to 27 June.

Deltic's board unanimously recommended the offer, citing the increasingly challenging fiscal and political backdrop for UK oil and gas exploration.

The company noted that continued uncertainty around the UK government's stance on licensing and taxation, combined with rising development costs, particularly relating to its Selene discovery, had left it reliant on raising new capital to continue.

"Despite the difficult political and fiscal backdrop impacting the UK exploration and production industry over a number of years, the achievements of the Deltic team and the quality of our assets have been recognised by Viaro," said Deltic CEO Andrew Nunn.

"This transaction provides certainty for shareholders as well as our staff, regulators and joint venture partners who are progressing the Selene opportunity towards development for the benefit of the UK's future energy needs."

Viaro had secured irrevocable undertakings from holders of 19.17% of Deltic's shares to vote in favour of the deal.

The scheme was expected to become effective in the fourth quarter of 2025, subject to shareholder and court approvals.

"Deltic's portfolio represents a natural fit with Viaro's existing assets and strategic focus in the North Sea," commented Francesco Mazzagatti, CEO of Viaro Energy.

"The Selene discovery is a key driver for this acquisition, which forms an important component of Viaro's recently announced transaction with Shell and ExxonMobil, as well as within the broader basin context."

At 0900 BST, shares in Deltic Energy were up 9.09% at 6p.

Reporting by Josh White for Sharecast.com.

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