Horizon Oil, a mid-tier Australian oil and gas company, has made a takeover offer for compatriot Cue Energy. The proposal is a cash and share offer for 100% of Cue.

Offer Details

The offer consists of A$0.008 in cash and 0.5625 Horizon shares for each Cue share, implying a total value of A$0.143 (US$0.10) per Cue share. This compares to Cue's closing share price of A$0.13 last Friday. If successful, Cue shareholders would own 16.31% of the combined entity, with Horizon shareholders owning the remaining 83.69%.

Major Shareholder Agreement

Cue's major shareholder, Echelon Resources, has agreed to sell a 19.99% stake from its 49.97% holding to Horizon at A$0.115 per share. Furthermore, Echelon plans to accept the takeover offer for its remaining Cue shareholding 21 days after the offer period opens, provided no superior proposal emerges.

Company Background and Status

Both Horizon and Cue have historically built their success on international ventures and have only recently become part-owners of a production asset in Australia's Northern Territory. As of the announcement, Cue has not yet issued a formal response to the takeover offer.