Cue Energy Board Urges Shareholders to Reject Horizon Oil Takeover Bid

The latest announcement is out from Cue Energy Resources Limited ( (AU:CUE) ).

Cue Energy Resources has issued a target’s statement in response to an off‑market takeover bid from Horizon Oil for all its ordinary shares, with an Independent Board Committee unanimously advising shareholders to reject the offer. The board argues the control premium is inadequate, the bid is opportunistically timed while Horizon’s shares trade at a decade high, and comparative measures suggest the proposal undervalues Cue relative to the bidder.

Directors also warn that accepting the scrip offer would significantly dilute existing investors’ exposure to Cue’s key assets while exposing them to Horizon’s debt levels and associated risks. They add that potential synergies are understated, the offer is highly conditional with no certainty of completion, and tax rollover relief would only apply if Horizon reaches a high acceptance threshold, reinforcing their recommendation that investors take no action.

The most recent analyst rating on (AU:CUE) stock is a Hold with a A$0.16 price target. To see the full list of analyst forecasts on Cue Energy Resources Limited stock, see the AU:CUE Stock Forecast page.

More about Cue Energy Resources Limited

Cue Energy Resources Limited is an energy company engaged in the exploration and production of oil and gas. Its primary business involves managing and developing hydrocarbon assets, giving shareholders exposure to upstream energy projects and related revenue streams in the sector.

Average Trading Volume: 662,064

Technical Sentiment Signal: Buy

Current Market Cap: A$105M

Find detailed analytics on CUE stock on TipRanks’ Stock Analysis page.