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News: Cue Energy Resources rejects New Zealand Oil and Gas takeover offer

  1. Cue Energy Resources (ASX:CUE) has recommended that its shareholders reject New Zealand Oil and Gas’ takeover offer as it substantially undervalues the company.

    It noted the offer price of $0.10 per share implies a premium of only 11.1% to the closing price of $0.09 per Cue Energy share on 11th February 2015, well below the premium typically paid in Australian control transactions.

    Cue added that in addition to its producing Maari Field in New Zealand and the Oyong and Wortel fields in Indonesia it also has cash reserves of $37 million, or about $0.053 per share, and no debt.

    The company said NZOG’s offer follows the recent sharp drop in oil prices which has led to material reductions in the valuations of most oil and gas companies listed both on ASX and globally.

    NZOG has a 19.99% interest in Cue and is seeking to acquire the remaining shares it does not already own.

     

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