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On 15 July 2020, Reabold Resources plc (Reabold) a possible all-share offer, for the entire issued and to be issued share capital of Deltic Energy plc (Deltic). The possible offer values Deltic at £12.34 million, a premium of 9.7% to Deltic’s middle market share price as of 14 July. Reabold also confirmed within the announcement that Deltic’s board had ‘unequivocally rejected’ the offer, and that they are only minded to proceed with the possible offer if a recommendation from the board of Deltic is ultimately forthcoming.

Deltic has since its rationale for rejecting the offer on 16 July 2020, stating:

“The Proposed Offer does not place an appropriate value on Deltic Energy, given that it places no value at all on its significant non cash assets, not least its share of two potential high impact exploration wells with their partner Shell and does not even reflect the existing cash balance of Deltic Energy.”

Deltic further went on to claim that it does not believe there is a ‘strong rationale, commercial logic or sufficient operational synergies that would justify a combination of the two businesses’ and that the deal would expose shareholders to risky investments, further claiming in relation to Reabold’s investments, they had ‘serious concerns in relation to the technical viability, materiality and limited potential upside associated with various of these projects’.