Troubled North Sea player Reabold Resources (LON: RBD) has been the target of an “unsolicited approach” from one of the investors who sought to topple the company’s board last year.
The London-listed oil and gas firm confirmed on Tuesday that it has been contacted by Kamran Sattar on behalf of Portillion SPV O&G, believed to be an affiliate of Portillion Capital.
Mr Sattar was a key figure in Reabold Requisition group, which attempted to oust the company’s board and take control, and he has even been endorsed by boxing legend Amir Khan.
In an update released on Tuesday, Reabold said the approach “may or may not lead” to an offer being made for the firm’s entire issued and to be issued ordinary share capital.
It added: “This highly preliminary approach was made yesterday at 4.46 p.m. (London time) via a succinct email, with no details included, save for it referring to a possible offer price at a 10% premium to yesterday’s closing price, implying a value of 0.2035 pence per ordinary share of 0.1 pence each, based on the middle market closing price of an ordinary Share.”
As it stands, the board says the offer “significantly undervalues” Reabold’s investment portfolio, the company as a whole, and its future prospects.
It is advising shareholders to take no action at this stage.
The ball is now in Mr Sattar’s court, and he is required, by no later than 5pm on April 12, to announce a firm bid for the company, or rule one out.
Reabold said: “This deadline can only be extended with the consent of the Takeover Panel in accordance with Rule 2.6(c) of the Code.
“As a consequence of this announcement, an ‘Offer Period’ has now commenced in respect of the Company in accordance with the rules of the Code. The attention of the Company’s shareholders is drawn to the disclosure requirements of Rule 8 of the Code, which are summarised below.
“A further announcement will be made in due course, as and when appropriate.”
There’s history there
In November, Reabold’s co-chief executives Sachin Oza and Stephen Williams survived a vote on their future after investors knocked back resolutions tabled by the Reabold Requsition.
The activist group, which owned about 6.93% of the firm, was seeking to replace the firm’s top brass with four new directors, including Mr Sattar, in order to install some “fresh blood”.
The Reabold Requisition, which received surprise backing from Amir Khan, was also hoping to stop the “knee jerk” decision making by the board, that it claimed had hurt the company’s share price.
One of the members of the group, corporate financier Cathal Friel, told Energy Voice he is nursing a substantial loss as a result of the firm.
In a bid to address the “major distraction”, Reabold’s CEOs agreed to hold a vote, in which investors “clearly rejected” all the resolutions put before them.
During the process, the company farmed-in to the Shell-operated North Sea P2332 licence.
It is located near the Pensacola find, subsequently revealed to be “one of the largest natural gas discoveries in the Southern North Sea in over a decade”.
Mr Oza and Mr Williams also said they had a plan to address the company’s low share price, which included handing £4 million back to shareholders.
Reabold completed the sale of Corallian Energy, owner of the Victory gas prospect, to Shell last year, a move that netted the firm over £12m.
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