A Reabold Resources (LON: RBD) investor – who recently made an “unsolicited approach” for the oil firm – has ruled out making a formal takeover bid.
Portillion SPV O&G, part of Portillion Capital, says it wont push ahead with a hard and fast offer for the London-listed company as it would “not be fair to shareholders”.
The firm – headed up by Kamran Sattar – also hit out at Reabold’s board for failing to “engage meaningful”, and reiterated its support for a changing of the guard.
It means that – for the time being anyway – Reabold’s current board of Stephen Williams and Sachin Oza will remain in place.
Mr Sattar was previously a ringleader in the Reabold Requisition, which moved last year to topple the company’s top brass and take control of the North Sea operator.
Approach made in March
Reabold announced last month than it had been the target of an “unsolicited approach” from Portillion SPV O&G.
According to the troubled firm’s board, the bid “significantly” undervalued the company, its investment portfolio, and its future prospects.
Shareholders were advised to hold fire, and Mr Sattar was given until April 12, today, to make a formal bid, or back down.
In an update, Portillion confirmed that it “will not make a firm offer for Reabold Resources”.
No bid, but still unhappy
It added: “Buying the company at the current value would not be fair to shareholders that have invested at previous offerings by the Company and as a result Portillion respects and values all shareholders but remains an advocate of change to the current board structure to ensure the company can operate prudently.”
The confirmation was accompanied by a swipe at Reabold’s board, claiming they had “failed to engage meaningfully before putting the company in an offer period”.
According to Portillion, there was no engagement on either the proposed offer, or with the fund in general, despite claims it played a part in Reabold delivering on its strategy.
That includes the purchase of £500,000 of convertible loan notes in Corallian Energy, which Reabold sold to Shell last year.
It is claimed the cash went towards the development of the Victory gas field, West of Shetland, and that Portillion was described by Mr Williams as “a group of strategic investors”.
That is on top of “$2.5m provided to DayBreak Oil & Gas for the execution the equity exchange agreement, the only other monetisation and execution of strategy the board of the Company refer too”.
In a statement, Reabold said: “The Company notes the announcement released earlier today by Portillion Capital Ltd. on behalf of Portillion SPV O&G stating that Portillion does not intend to make a firm offer for Reabold. Accordingly, Portillion is now subject to the restrictions under Rule 2.8 of the City Code on Takeovers and Mergers and Reabold is no longer deemed to be in an ‘Offer Period’, as defined in the Code.”