NZOG says acceptances in Cue takeover lift holding to 27% 13 Mar 2015
Related articles
- NZ consumers grow more upbeat, may resume spending Business
- Knowles quits as CEO of KiwiBank Business
- NZ migration bolstered by British invasion Migration
- NZ manufacturing activity reaches highest since 04 Business
- NZ dollar hits 22-month high vs euro Business
- OceanaGold finds new gold deposits at Fraser mine Business
- Transpower gets go-ahead for $170m SI upgrade Business
- NZ home sales creep up in March, still subdued Property
- NZ economy expands at fastest pace in two years Business
- New Zealand food prices fall in February Business
NZOG says acceptances in Cue takeover lift holding to 27%, close to target
By Suze Metherell
March
13 (BusinessDesk) - New Zealand Oil and Gas said acceptances
under its hostile takeover offer for ASX-listed Cue Energy
Resources lift its interest in the target company to 27.3
percent, close to its target holding.
The Wellington-based oil and gas company acquired 19.99 percent of Melbourne-based Cue from Todd Energy just before Christmas and made a full takeover at the same price of 10 Australian cents last month. The offer documents say it is seeking only a 30 percent stake although the takeovers code requires an offer to buy all the shares if it moves above 20 percent. The offer closes on March 27.
Cue's board rejected the
offer, saying it "substantially undervalues" the company,
after an independent report from Grant Samuel valued the
company at 11.5-to-15 Australian cents a share. The shares
last traded on the ASX at 10.5 Australian cents.
John
Kidd, an analyst at boutique Wellington firm Woodward
Partners, this week criticised the Grant Samuel assessment,
saying it "materially overstates" Cue's value, which he put
at 5-to-9.5 Australian cents.
Lifting its stake to 30
percent of Cue would give NZOG greater exposure to the Maari
and Manaia oil and gas fields at a time the company is
looking at ways to increase overall reserves. In rejecting
the offer, Cue said unproven exploration opportunities could
be sacrificed in favour of immediate cash flow from
producing assets in New Zealand in the Maari and Manaia
fields.
"We feel happy with the level that we've
achieved," John Pagani, a spokesman for NZOG told
BusinessDesk. "But we are obligated to stay in the market
until the offer period ends."
The bidder documents
also show NZOG intends to keep Cue's ASX listing, depending
on whether the company had enough liquidity and spread in
shareholders to fulfil ASX listing rules. Cue's 2014 annual
report doesn't include its largest shareholders, but
according to its 2013 annual report, the top 20 shareholders
controlled 56.6 percent of the company, including a 23.4
percent stake held by Todd.
Global oil prices have plunged in recent months, exacerbated by the Organisation of the Petroleum Exporting Countries resisting calls to reduce their supply as they try to protect their position from rival producers. Against that backdrop, and with no debt and $115.3 million in cash, NZOG is now focusing on acquisitions to diversify away from fluctuating oil values and bolster its income, while drawing back from exploration activity.
Last month, NZOG reported a loss of $10.5 million in the six months ended Dec. 31, from a profit of $4 million a year earlier, as it recognised a $13 million write down on its Tui oil field. Sales rose 5.2 percent to $54.1 million, largely driven by its ownership of a larger stake in Tui, purchased in the last year, and stability in gas prices despite oil price falls. Earnings before interest, tax, depreciation, amortisation and exploration expenses was $28.3 million, compared to $31.4 million in the previous comparable period.
Shares of NZOG were unchanged at 58 cents and have fallen 4.5 percent since the start of the year.
(BusinessDesk)
News
Hilary Timmins' Award-Winning UK Documentary Series To Inspire NZ Students
29 Jun 2020 Education
Dream Catchers, produced and directed by Hilary Timmins, celebrates the success stories of more than thirty inspirational New... more
New Zealand reaffirms support for Flight MH17 judicial process
7 Mar 2020 News
Ahead of the start of the criminal trial in the Netherlands on 9 March, Foreign Minister Winston Peters has reaffirmed the need to... more
Business
NZ Government's Economic package to fight COVID-19
17 Mar 2020 Business News
The Coalition Government has launched the most significant peace-time economic plan in modern New Zealand history to cushion the... more
NZ Government announces aviation relief package
19 Mar 2020 Business News
Transport Minister Phil Twyford today outlined the first tranche of the $600 million aviation sector relief package announced earlier... more
Living
Diversity was Key at New Zealand Trade Tasting in London
6 Jun 2022 Food & Wine
New Zealand Winegrowers Annual Trade Tasting was recently held in London, on Wednesday 4 May, in Lindley Hall.
It was the first... more
Kiwi author stuns Behind the Butterfly Gate
12 Jan 2022 Arts
Hidden behind the Butterfly Gate is where the secret has been kept for 76 years...
New Zealand writer Merryn Corcoran’s... more
Property
Fairer rules for tenants and landlords
17 Nov 2019 Property
17 NOVEMBER 2019
The Government has delivered on its promise to the over one million New Zealanders who now rent to make it fairer... more
New Zealand Government will not implement a Capital Gains Tax
17 Apr 2019 Property
The Coalition Government will not proceed with the Tax Working Group’s recommendation for a capital gains tax, Jacinda Ardern... more
Migration
Boosting border security with electronic travel authority – now over 500,000 issued
19 Nov 2019 Migration
19 NOVEMBER 2019
We’ve improved border security with the NZeTA, New Zealand Electronic Travel Authority, which helps us to... more
Christchurch reinstated as refugee settlement location
18 Aug 2018 Migration
18 AUGUST 2018
HON IAIN LEES-GALLOWAY
The announcement that Christchurch can once again be a settlement location for refugees... more
Travel
Gallipoli Anzac Day services cancelled
19 Mar 2020 Travel & Tourism
The New Zealand and Australian Governments have announced this year’s joint Anzac Day services at Gallipoli will be cancelled... more
New Zealanders advised not to travel overseas
19 Mar 2020 Travel & Tourism
New Zealanders advised not to travel overseas
more
Sport
The Skipper's Diary: Sir Richard Hadlee honouring his father and NZ's Forty-Niners
27 Oct 2019 Cricket
NZNewsUK London Editor Charlotte Everett spoke to Sir Richard Hadlee about why he’s chosen to publish his father’s... more
PREVIEW: All Blacks v England semi-final
26 Oct 2019 Rugby
The two most convincing quarterfinals winners are set to square off in a semifinal showdown for the ages when the All Blacks meet old... more
Columns
Gordon Campbell on the Gareth Morgan crusade
11 Nov 2016 Opinion
Gordon Campbell on the Gareth Morgan crusade
First published on Werewolf
The ghastly likes of Marine Le Pen in France and Geert ... more
Gordon Campbell on the US election outcome
10 Nov 2016 Opinion
Column - Gordon Campbell
Gordon Campbell on the US election outcome
Well um.. on the bright side, there (probably)... more
Kiwi Success
Congratulations to Loder Cup winner
26 Sep 2018 People
25 SEPTEMBER 2018
The Loder Cup, one of New Zealand’s oldest conservation awards, has been awarded to Robert McGowan for 2018... more
Appointments to New Zealand National Commission for UNESCO
16 Aug 2018 Appointments
16 AUGUST 2018Appointments to New Zealand National Commission for UNESCO
HON JENNY SALESA
Associate Education Minister Jenny Salesa is... more
Recruitment
Historic pay equity settlement for education support workers
14 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more
Historic pay equity settlement for education support workers
22 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more