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Reabold Resources PLC on Monday confirmed it is in discussions for an all-share acquisition of fellow AIM listing Union Jack Oil PLC. This followed Union Jack’s disclosure earlier on Monday that it had received a non-binding indicative offer letter from Reabold on June 1. ‘Reabold believes that the combination of the two complementary companies would create a group with greater scale, superior access to capital and other compelling operating efficiencies,’ Reabold noted. Union Jack is a Bath, England-based onshore fuel producer in the UK and US, while Reabold is a London-based investor in the oil and gas sector. Shares in Union Jack jumped 31% to 4.40 pence each on Monday morning in London, giving it a market capitalisation of £6.5 million, while Reabold traded 1.0% lower at 87.60p per share, for a market cap of £12.7 million. Union Jack has said it is reviewing the offer, and has granted Reabold due diligence access. Under UK takeover rules, Reabold has until July 13 to announce a firm intention to make an offer or walk away, unless an extension is granted. Both firms stressed there is no certainty of an offer being made or proceeding, and advised their shareholders to take no action. Union Jack swung to a pretax loss of £6.9 million in 2025 from profit of £406,218 in 2024. Revenue slipped 37% to £2.5 million from £3.9 million, but the company maintained confidence in the ‘successful transition of focus’ to activities in the US. Chair David Bramhill said last month: ‘I am confident that an increase in drilling, appraisal and development activity currently being evaluated in the pursuit of growth from our balanced UK and US portfolios has the potential for notable value creation for shareholders.’ Separately, Reabold disclosed in early June that it had entered an exclusivity agreement granting Zenith Energy Ltd exclusivity to assess the potential acquisition of Reabold’s shares in Daybreak Oil and Gas. Reabold owns around 42% of the latter’s outstanding ordinary shares. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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