Reabold Resources (LSE:RBD) has declared its all-share takeover offer for Union Jack Oil plc final, maintaining that the proposed combination would create a larger, more diversified energy group with access to additional funding opportunities.
The company said its board disagrees with Union Jack’s assessment of the proposal, arguing that the target’s new board has placed excessive emphasis on short-term share price movements and funding assumptions rather than the longer-term implications of combining the businesses.
Reabold maintains that the transaction would provide benefits to shareholders of both companies through a larger asset portfolio, increased financial resources and the consolidation of their energy interests.
Addressing questions about its financial position, Reabold highlighted its recent £4.16 million fundraising and its access to capital markets as evidence of its ability to secure funding.
The company also questioned Union Jack’s capacity to raise additional capital, citing its limited cash resources and the rejection of shareholder resolutions required for a capital increase. These concerns form part of Reabold’s response to Union Jack’s opposition to the takeover proposal.
Reabold further disputed Union Jack’s assessment of the West Newton project, an onshore conventional gas and condensate discovery in the United Kingdom. The company reiterated its view of the project’s scale and development potential, which it considers relevant to the proposed combination.
The Reabold board has urged shareholders to consider the longer-term implications of the transaction, including access to funding, asset development and the potential benefits of consolidation.
It also maintained that governance disagreements at Union Jack and the current level of acceptances for the offer should not determine shareholders’ assessment of the proposed transaction.
Reabold is a UK-listed energy investment and development company with interests in oil and gas assets at various stages of production, appraisal and development. Its portfolio includes the West Newton project, which remains a focus of its development strategy.
The all-share offer has been declared final, while the two companies continue to hold differing positions on the proposed transaction.
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