Cue Energy’s Independent Board Committee has doubled down on its unanimous recommendation for shareholders to reject Horizon Oil’s takeover offer, which remains at a low acceptance level and declared 'best and final'.
- Horizon’s offer declared 'best and final' with no increase
- Only 2.4% of Cue shares accepted excluding Echelon holdings
- Cue holds A$16 million cash and no debt, supporting standalone viability
- Offer conditions mostly met but not yet unconditional
- Independent Board Committee urges shareholders to take no action
Board Reaffirms Rejection as Horizon’s Bid Stalls
Cue Energy Resources Limited (ASX:CUE) has reinforced its firm stance against Horizon Oil Limited’s takeover bid, with the Independent Board Committee (IBC) unanimously urging shareholders to reject the offer by taking no action. Despite Horizon’s declaration that its offer consideration is “best and final,” acceptance levels remain minimal, excluding shares held by major stakeholder Echelon Offshore Limited.
As of early June 2026, Horizon has secured acceptances for only about 2.4% of Cue’s total shares, a figure that rose marginally by 0.24% shortly after. This sluggish uptake underscores the board’s confidence in Cue’s standalone prospects and shareholder resistance to the bid.
Financial Position Supports Standalone Outlook
The board highlights Cue’s solid financial footing, with an unaudited cash balance of A$16 million and zero debt as of 30 May 2026. This liquidity position bolsters the company’s ability to continue operations independently, contrasting with the conditional and incomplete nature of Horizon’s offer.
While Horizon has fulfilled several significant conditions of the offer, it has yet to declare the bid unconditional. The deadline for this declaration was 12 June 2026, adding a layer of uncertainty over the offer’s completion. Moreover, the bid’s failure to reach the 80% acceptance threshold could deny shareholders access to scrip-for-scrip capital gains tax rollover relief, a potential deterrent for acceptance.
Shareholder Advisory Remains Unchanged
The IBC’s recommendation to reject the offer remains consistent with its original and first supplementary target’s statements, emphasizing the absence of any improved terms or competing proposals. Shareholders are advised to maintain their current holdings and disregard the takeover documents issued by Horizon.
Chair of the Independent Board Committee, Peter Hood AO, reiterates the board’s unanimous position, underscoring confidence in Cue’s strategic direction and value proposition. The offer is scheduled to close on 19 June 2026, unless extended or withdrawn, leaving a narrow window for any last-minute developments.
Bottom Line?
Cue’s strong cash position and low acceptance rate leave Horizon’s bid hanging in the balance as the offer deadline looms.
Questions in the middle?
- Will Horizon increase its offer or extend the bid period beyond 19 June?
- How will shareholders respond if the offer fails to become unconditional?
- Could a competing proposal emerge to disrupt the current takeover dynamic?