13 Feb 2015

Cue rejects NZOG takeover bid

3:00 pm on 13 February 2015

The Australian-listed energy explorer, Cue Energy is recommending investors reject a take-over bid from New Zealand Oil & Gas.

The listed company, which has a near 20 percent stake in Cue, is offering 10 cents a share.

Cue's board said the take-over bid was too low, and was a premium of only 11 percent on the company's closing price of 9 cents a share on Wednesday.

It points out Cue, which has an interest in the Maari field in Taranaki, has $37 million in cash reserves and no debt.

The board also said that if New Zealand Oil & Gas gains control, it could change Cue's growth plans which may not be in the interests of shareholders.

Cue will prepare a target statement on the offer and send it to investors in two weeks time.

It has also commissioned Grant Samuel to prepare an appraisal report on the bid.

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