Horizon Oil (ASX:HZN) announced an off-market takeover bid to acquire all fully paid ordinary shares in Cue Energy Resources (ASX:CUE) that it does not already own.
The move aims to consolidate interests between the two entities.
Under the terms of the proposal, each Cue shareholder is entitled to receive a combination of $0.008 cash and 0.5625 Horizon shares for each Cue share held on the record date of March 3.
Based on the market close on Feb. 27—the last practicable date—the implied value of this consideration is approximately $0.143 per Cue share.
This represents a 10% premium to the closing price of Cue shares on the last practicable date and a 16.3% premium to the 30-day volume-weighted average price.
Should the offer be successful, existing Cue shareholders will hold 16.31% of the combined group, while existing Horizon shareholders will own 83.69%.
Horizon has noted that the offer is subject to specific conditions outlined in the bidder's statement.