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Horizon Oil Limited ( (AU:HZN) ) has provided an update.
Cue Energy Resources has released a target’s statement responding to an off-market takeover bid from Horizon Oil Limited for all of Cue’s ordinary shares. An Independent Board Committee of Cue has unanimously recommended that shareholders reject the offer and advises investors that they can oppose the bid by taking no action.
The board argues the Horizon proposal offers an inadequate control premium, is opportunistically timed while Horizon’s shares trade at a decade high and appears to undervalue Cue relative to Horizon on comparative metrics. Directors also warn of significant dilution of Cue asset exposure, understated synergies, new debt-related risks for accepting shareholders, high conditionality around deal completion and tax rollover relief that is only available if a high acceptance threshold is met.
The most recent analyst rating on (AU:HZN) stock is a Buy with a A$0.30 price target. To see the full list of analyst forecasts on Horizon Oil Limited stock, see the AU:HZN Stock Forecast page.
More about Horizon Oil Limited
Cue Energy Resources Limited is an Australia-based oil and gas company focused on exploration and production. The company holds interests in key upstream assets, giving shareholders exposure to hydrocarbon projects whose value is closely linked to commodity prices and operational performance in the energy sector.
YTD Price Performance: 39.02%
Average Trading Volume: 2,808,958
Technical Sentiment Signal: Buy
Current Market Cap: A$463.9M
For detailed information about HZN stock, go to TipRanks’ Stock Analysis page.