Reabold Resources has abandoned its takeover bid for Deltic Energy, formerly known as Cluff Natural Resources.
A possible all-share offer of £12.3m from Reabold was “unequivocally rejected” by Deltic Energy last month amid claims it undervalued the company.
What followed was a series of exchanges between the two firms in recent weeks, incuding concerns on both sides about the other’s reasoning.
However this morning, Reabold, which also holds stakes in the likes of Corallian Energy and Rathlin Energy, announced “it does not intend” to make a formal offer for Deltic Energy.
Deltic had said last month that it had “serious concerns” about the upsides of some of Reabold’s projects and said the combination was not “appropriate”.
The potential £12.3m offer was at a £1.2m premium on Deltic’s market cap at the time.
In the stock exchange announcement today, Reabold highlighted that UK merger rules it could still legally make an offer within six months.
It said: “Further to the Company’s announcement of 15 July 2020, in relation to a possible all-share offer by Reabold for the entire issued and to be issued share capital of Deltic Energy plc (“Deltic”) (the “Possible Offer”), Reabold announces that it does not intend to make an offer for Deltic.”
Deltic Energy has been contacted for comment.
Last month the Deltic’s largest shareholder, Michael Spencer, backed its move to ward off Reabold.