CUE cue energy resources limited

Does OG need NZO to claim CUE?

  1. 1,026 Posts.
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    One assumption that can be made about OG is that they are currently a purchaser of Oil and Gas assets in Australia. The Chairman of Ofer Global has stated that "we intend to continue to build the portfolio and grow our presence in Australia and the region". (SMH 5/10/2018)

    Given their position it would be reasonable to assume that they are unlikely to favour unwinding their position in NZO and CUE to allow another party to complete a takeover.

    But the direct line of OG--->NZO--->CUE may not be a simple path.

    After initially acquiring 70% of NZO OG tried to complete its takeover of NZO in 2019.
    This attempt was structured as a Scheme of Arrangement requiring 75% of minority shareholders to vote in favour of the scheme.
    Its worth noting

    * the board of directors of NZO, post OG acquisition of 70% of NZO, consisted 4 OG directors, OG chair and 2 independent directors

    * the independent report valued NZO at 62-84c* the board unanimously recommended acceptance of the offer of 62c even though it was a the bottom end of the value range (but was at a 25% premium to the trading price prior to the offer.)

    * a revised offer of 74c was also recommended by directors and rejected by minority shareholders

    * although NZO independent value was assessed to be between 25-35% higher than its trading price the value of NZO's CUE holdings were valued based on "observed market values". In effect CUE was ascribed no premium to its market value.

    It appears that at the time of the SOA there was a difference of opinion regarding the fair value of NZO, and by default CUE, between the directors and minority shareholders. The NZO board remains the same, the question for minorities is whether the boards opinion on the value of NZO has changed.

    Given that this could be a stumbling block on the way to a CUE takeover is there a scenario where OG could make a direct play for CUE? Could they for example make a takeover bid and then direct NZO, as the majority shareholder, to accept the offer?

    I am guessing that, while not an everyday issue, a similar structural issue has happened before. Has anyone seen a real world workaround that has resolved this issue?



 
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Last
11.5¢
Change
-0.005(4.17%)
Mkt cap ! $80.47M
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11.5¢ 12.0¢ 11.3¢ $157.7K 1.375M

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Price($) Vol. No.
12.0¢ 1452460 7
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Last trade - 15.54pm 10/09/2025 (20 minute delay) ?
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