Cue challenges Horizon Oil’s takeover bid at Takeovers Panel

Horizon Oil Limited ( (AU:HZN) ) has provided an update.

Cue Energy Resources has asked the Takeovers Panel to intervene in Horizon Oil’s off-market takeover bid, which offers a mix of Horizon shares and cash for all Cue shares. The move comes after Horizon struck a pre-bid deal to acquire nearly 20% of Cue from major shareholder Echelon Resources at a lower price than the implied offer, and Echelon signalled it would accept the broader bid absent a superior proposal.

Cue argues these arrangements, combined with overlapping directorships between Cue and Echelon, undermine a fair and competitive control process and may breach Australian takeover rules. The company is seeking interim orders to prevent Echelon from accepting Horizon’s offer and final orders that would loosen Echelon’s commitment, mandate support for any superior bid, grant withdrawal rights to accepting shareholders, and force additional disclosure to the market.

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 Australian oil and gas exploration and production company listed on the ASX. Echelon Resources Limited, also ASX-listed, is Cue’s largest shareholder with just under 50% of its shares, and a majority of Cue’s board also holds directorships at Echelon, underscoring a tightly linked shareholder and governance structure.

Average Trading Volume: 2,508,677

Technical Sentiment Signal: Buy

Current Market Cap: A$431.3M

For detailed information about HZN stock, go to TipRanks’ Stock Analysis page.