Reabold in a statement said it does not intend to make an offer for Deltic.
Deltic in mid-July rejected the proposed share-based takeover offer which, at 1.5 Reabold shares per Deltic share, was pitched at £12.3mln or 0.87p per share.
“Reabold’s offer valued the Company at £12.3m, a small premium of £1.2m on its market cap at the time,” said Sam Wahab, analyst at stockbroker SP Angel.
“Even in today’s subdued market, it was always going to be a challenge for Reabold to convince Deltic’s shareholders to accept such a small return on investment in our view.”
In a statement on July 16, Deltic said the offer placed no value on its significant non-cash assets and ‘not least its share of two potential high impact exploration wells with partner Shell’.
The offer did not even reflect its existing cash balance (£13.2mln), added Deltic, which said it also had concerns over Reabold’s investments and the West Newton project in Yorkshire in particular,
The takeover would have seen Reabold shareholders own approximately 76.2% of the combined group’s issued share capital and Deltic shareholders approximately 23.8%.