The Union Jack Oil takeover bid by Reabold Resources is facing deepening resistance, with Letters of Intent pledging to reject the all-share offer now representing in excess of 23% of Union Jack’s share capital, up from the 18.13% that was last publicly disclosed.
The detail that matters: Reabold is said to have been aware of the higher figure since the preceding Friday without publishing a regulatory announcement. That raises an obvious question about disclosure obligations under the UK Takeover Code.
Union Jack Oil Takeover: What the Letters of Intent Mean
A Letter of Intent (LOI) in a takeover context is a written pledge from a shareholder stating they do not intend to accept the offer. LOIs are not legally binding in the way a formal acceptance is, but they are a strong signal of shareholder sentiment and must be disclosed publicly under the Takeover Code once they reach material thresholds.
Reabold has already issued two updates on LOI numbers during the offer period. The last confirmed that shareholders holding 18.13% of Union Jack’s equity had pledged rejection. According to ShareProphets, the figure has since risen to in excess of 23%, and Reabold has not issued an RNS (a Regulatory News Service announcement, the standard channel for market-sensitive disclosures) to reflect it.
For context on where acceptances actually stand: the Day 21 Acceptance Level Update on Investegate showed that Reabold had received valid acceptances covering just 3,437,504 Union Jack shares, equal to 2.35% of the company’s share capital. That is a very thin return on a bid that was described as recommended when it launched.
How the Bid Got Here
Reabold sent an indicative offer letter to Union Jack on 1 June 2026, as reported by Yahoo Finance, covering a possible offer for the company’s entire issued share capital. The formal recommended all-share offer was then announced on 1 July 2026, with Reabold’s board confirming it had reached agreement on terms under Part 28 of the Companies Act 2006.
The Offer Document, setting out the full terms and conditions, was published on 29 July 2026, the same day that shareholders Craig Howie and John Americanos filed a Rule 2.10(c) disclosure on the London Stock Exchange, indicating their own Letter of Intent to reject.
The offer is structured entirely in Reabold shares, with no cash component. For Union Jack shareholders used to holding a pure-play UK oil asset, accepting means swapping that position for shares in the bidder, a trade many appear unwilling to make.
The Deadline and What Happens Next
According to the Day 21 RNS published via Reuters and TradingView, the offer remains open for acceptances until 1.00 p.m. on 25 September 2026, the Unconditional Date, though the Takeover Code allows this to be brought forward or extended.
For a bid to succeed under the Code, it must pass its acceptance condition, typically 50% plus one share of the target’s equity. With formal acceptances at 2.35% and rejection pledges now said to exceed 23%, Reabold would need a dramatic reversal in shareholder sentiment to reach that threshold before the deadline.
The unresolved procedural question is why the updated LOI figure has not appeared in an RNS. The UK Takeover Panel, which oversees compliance with the Code, has the power to compel disclosure and can also require the publication of legal opinions obtained by the parties. Whether it acts before 25 September will determine how much information Union Jack shareholders have before the clock runs out.
