Ratio Energy wants to acquire Pharos, an oil and gas exploration, development and production company active in Egypt and Vietnam, for 104 million pounds, about 410 million shekels. The offer, made through its subsidiary Ratio Petroleum, also includes roughly 21 million pounds in dividends that current Pharos shareholders would receive.
Under the proposal, Ratio would pay 23.1 pence per Pharos share. That is below Pharos’s last closing price on the London Stock Exchange before the offer, 25.4 pence, but the dividend entitlement lifts the effective value to 28 pence per share, about a 10.2% premium.
The deal still needs approval from Pharos shareholders, a British court, and government approvals in Vietnam and Egypt. Pharos currently holds two producing offshore assets and two additional offshore exploration licenses in Vietnam, as well as two producing onshore assets in Egypt. In 2025, its combined output reached about 5,400 barrels a day, including 4,000 barrels a day in Vietnam and 1,400 barrels a day in Egypt, generating annual revenue of $115 million.
Ratio Petroleum said it plans to finance the acquisition with equity, debt, or bank financing. Ratio Energy, which controls Ratio Petroleum, has approved an investment of up to $50 million and also provided a one-year bank Letter of Credit for 104 million pounds. In 2024, Ratio Energy tried to delist its subsidiary through a tender offer, but that effort was not completed. The parent company holds 15% of the Leviathan gas field and is controlled by the Landau and Rotlevi families. In February, Ratio Energy and Ratio Petroleum said they were postponing a merger review until after the second quarter so they could assess a possible drilling project in the Philippines. Ratio Petroleum currently has no revenue, reported a $1.3 million loss in 2025, and was valued at 87 million shekels before the announcement after its shares had fallen 58% since its 2017 IPO.
