Cue Energy Resources Limited (ASX: CUE) has applied to the Takeovers Panel regarding Horizon Oil Limited’s (ASX: HZN) off-market takeover bid, announced on March 2, 2026. Cue Energy is an oil and gas exploration and production company. The application also concerns related arrangements involving Echelon Resources Limited (ASX: ECH), a substantial shareholder of Cue, holding 49.93% of Cue’s shares.
The core of Cue’s application revolves around several contentions, including an alleged undisclosed association between Horizon and Echelon. Cue claims that Horizon’s pre-bid agreement with Echelon has diminished the potential for a competitive auction for control of Cue. This agreement involves Echelon selling approximately 19.99% of Cue’s shares to Horizon at $0.115 per share. Further, Cue argues that the pre-bid agreement and Horizon’s intention statement have a chilling effect on the auction for Cue’s control.
Cue also raises concerns about the conduct of Echelon nominees, five of whom are directors of both Cue and Echelon, for allegedly not notifying the remaining Cue directors of Horizon’s takeover intentions. Cue submits that the proposed acquisition of control by Horizon is not occurring in an efficient, competitive, and informed market. They also allege contraventions of sections 606 and 671B by Horizon.
Cue seeks interim orders restraining Echelon from accepting Horizon’s bid and preventing Horizon from processing any acceptance from Echelon until the Panel’s determination. Final orders requested include releasing Echelon from its intention statement, preventing acceptance before conditions are met or the Cue Independent Board Committee recommends acceptance, requiring Echelon to accept a superior proposal if one arises, providing withdrawal rights for shareholders who accepted during the Panel proceedings, and requiring supplementary disclosure. The Takeovers Panel has not yet appointed a sitting Panel or made any decision on whether to conduct proceedings.
