NZ Oil & Gas takes control of Cue Energy almost two years after launching full takeover offer
New Zealand Oil & Gas has taken control of Cue Energy Resources almost two years after launching a hostile takeover of ASX-listed company saying the move provides exposure to production and exploration interests in Australia, New Zealand and Indonesia.
NZOG lifted its stake to 50.01 percent from the 48.1 percent it ended up with at the end of its 2015 takeover attempt, buying 13.5 million Cue shares at a total cost of A$1.1 million, or 8.32 Australian cents a share.
In 2015, NZOG made a hostile takeover bid for Cue at 10 Australian cents a share after buying 19.99 percent of the company in the previous year from Todd Energy and picking up further shares from investors including Todd and Zeta Resources. At the time it announced its intention to carry out a strategic review of Cue including whether it should remain listed. Its takeover documents had said it was seeking only 30 percent although takeover rules required a full bid. That offer closed in March 2015.
Cue shares last traded at 9.4 Australian cents and have soared 96 percent in the past 12 months. NZOG shares were recently at 63.5 cents and have climbed 58 percent in the past 12 months.
"Cue has cut costs significantly and refined its strategy," said NZOG chief executive Andrew Jefferies. "All of its shareholders benefit from these changes, which provide a positive reason to increase our holding to over 50 percent."