- Union Jack Oil
- 01 July 2026 16:30:02
Source: Sharecast
Union Jack said the deal, which was recommended by both boards, has a "compelling" strategic rationale, but added that it had no other proposals capable of providing the funding required to execute its strategy.
The tie-up, which will see Union Jack shareholders receive 0.051 new Reabold shares for each share they own, is based on Reabold's closing price of 81p on Monday and will create an oil and gas investment firm worth a combined market cap of £17.8m.
The offer represents a 25% premium to Union Jack's closing price of 3.35p on 12 June, the day before the first statement regarding a possible offer.
"The combination will deliver a better capitalised business and more diversified portfolio with enhanced scale in the UK and increased international reach and the offer will enable Union Jack shareholders to participate in the future value creation of the enlarged group," said Union Jack's chair David Bramhill.
"In addition, having undertaken an extensive review of Union Jack's strategic and financing options, and carefully considered the alternatives available, the board of Union Jack has concluded that no alternative proposal capable of providing the funding required on acceptable terms to execute Union Jack's strategy is currently available."
Bramhill said it would have been unable to meet its licence commitments in the absence of other funding, which could have resulted in the forfeiture of key assets within its portfolio.
Union Jack Oil shares were up 3.7% at 3.89p before the close of play in London, up 72.9% since the start of 2026 but still 56.1% lower over the year. Reabold Resources shares were up 1.2% at 81.98p.