Serinus Energy Acquired by Xtellus Capital Partners

In a significant move within the oil and gas sector, Serinus Energy plc has agreed to a £5.1 million takeover by Xtellus Capital Partners, Inc. This acquisition, announced on March 24, 2025, marks a strategic shift for both companies, with Xtellus aiming to capitalize on undervalued assets and Serinus seeking to unlock value through private ownership.

The acquisition, valued at approximately £5.1 million on a fully diluted basis, represents a 30.8% premium to Serinus' closing share price of 2.6 pence on March 21, 2025. This premium underscores the undervaluation of Serinus' shares, which have struggled to gain market recognition despite the company's strong performance. Serinus' shares have seen a 59.29% decrease over the past year, highlighting the challenges faced by small-cap oil and gas companies in the current market environment.



Xtellus, a New York-based broker dealer and specialist investment bank, sees this acquisition as an opportune time to invest in oil and gas assets. The company believes that the withdrawal of capital from UK-listed small cap oil & gas stocks and the comparatively low sector valuation present a unique opportunity to acquire assets at a discount and provide them with the necessary private capital for growth. By taking Serinus private, Xtellus aims to eliminate the costs associated with maintaining a public listing and focus on growing the business without the scrutiny and regulatory burdens of being a publicly traded company.

The acquisition is expected to provide Serinus shareholders with an immediate realisation of value in cash for their shares at a premium to the closing price as at the latest practicable date. This move is seen as a way to realise value despite the limited liquidity of Serinus shares. The full cash consideration payable under the terms of the acquisition, together with certain fees and expenses in connection with the acquisition, will be funded through cash on Xtellus' balance sheet, indicating that Xtellus has the financial resources to complete the acquisition without taking on additional debt.

The acquisition is expected to be implemented through a court-sanctioned scheme of arrangement under Article 125 of the Companies (Jersey) Law 1991. Xtellus has received irrevocable undertakings from Serinus directors and certain other shareholders, representing approximately 14.4% of the existing issued ordinary share capital of Serinus, to vote in favour of the scheme.

In conclusion, the acquisition of Serinus Energy by Xtellus Capital Partners represents a strategic move by both companies to unlock value and capitalize on undervalued assets in the oil and gas sector. While the acquisition is expected to provide immediate value realization for Serinus shareholders, it remains to be seen how Xtellus will leverage its private capital to grow the business and create long-term value for its shareholders.