Reabold Drops UK Deltic Energy Offer

AIM-quoted investor Reabold Resources has abandoned its all-share offer for UK operator Deltic Energy, it said August 10, without giving any reason. It may have been counting on gaining more support from Deltic shareholders, judging from its remarks about preliminary conversations, than eventually materialised. Deltic's biggest shareholder said July 21 that it fully supported the Deltic management team. 

Under stock market regulations, Reabold may now not make another offer for at least six months, alone or in a consortium, barring a limited number of circumstances including Deltic changing its mind, or a possible rival offer for Deltic.

However, it added: "Reabold, and any person acting in concert with Reabold, reserves the right to acquire and/or offer to acquire Deltic shares or interests in Deltic shares subject to and in accordance with Rule 2.8 of the takeover code."

Reabold's strategy is to invest in high calibre upstream oil and gas opportunities with near-term production, but with a clear exit strategy and not as operator.