Reabold Resources plc (LON: RBD) has declared its all-share offer for Union Jack Oil (AIM: UJO) final, while rejecting criticisms raised by Union Jack’s newly appointed board over the value, funding and strategic merits of the proposed combination.
Reabold said it continues to believe the offer provides Union Jack shareholders with exposure to a larger, more diversified and better-capitalised energy company, with potential benefits from combining overlapping assets, reducing corporate costs and improving access to funding.
The company also disputed concerns surrounding the West Newton project, arguing that the asset remains strategically important and that the forthcoming WNA-2 recompletion programme is intended to provide further evidence on reservoir productivity and commercial potential.
On funding, Reabold highlighted its £4.16 million fundraising completed in April 2026 and said it remains funded for its current work programme. It contrasted this with Union Jack’s £0.8 million cash position, arguing that Union Jack may need further funding to meet future commitments.
Reabold also rejected Union Jack’s warnings over possible future dilution at the enlarged group, describing such assumptions as speculative, while arguing that Union Jack has not demonstrated committed financing for its own future requirements.
The offer will remain open until 1.00pm on 2 October 2026, after the Takeover Panel reset the transaction’s Day 60 deadline.
For investors, the key point is that Reabold has now effectively fixed the financial terms of the bid, except in limited circumstances such as the emergence of a competing offer. The outcome now depends primarily on shareholder acceptance levels before the 2 October deadline and whether Union Jack’s board can persuade investors that remaining independent offers superior value.
Comment: On the face of it UJO not wrapping its arms around RBD is madness, and indeed, it seems to be a case of a Ford Mondeo owner rejecting an offer of a Porsche 911. This seems to be a matter of mystery as much as the service providers involved, as the management’s alignment with its shareholders.
