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Summary

On 2 March 2026, Horizon Oil Limited (ASX: HZN) announced an off-market takeover offer for all of the fully paid ordinary shares in Cue Energy Resources Limited (ASX: CUE) that it did not already have a relevant interest in. At the same time, Horizon signed a pre-bid agreement with Echelon Offshore Limited, Cue's largest shareholder, to buy its 19.99% stake for A$0.115 per share. (Horizon ASX announcement, 2 March 2026)

• Deal type: Off-market takeover (not a scheme of arrangement)
• Offer consideration: A$0.008 cash plus 0.5625 Horizon shares for each Cue share
• Implied value: about A$0.143 per Cue share, based on Horizon's closing price of A$0.24 on 27 February 2026. That was a 10% premium to Cue's last close of A$0.13, and about 16.3% above its 30-day VWAP.
• Register date: 3 March 2026
• Cue board recommendation: The Cue Independent Board Committee recommended that shareholders REJECT the offer by taking no action (Cue update, 18 May 2026)
• Offer declared unconditional: 17 June 2026
• Offer closed: 19 June 2026
• Pre-bid (Echelon) stake completed: 26 June 2026
• Takeover completed and consideration delivered to accepting shareholders: 2 July 2026 (Horizon completion announcement, 3 July 2026)
• Final result: Horizon holds about 57.03% of Cue. This is below the 90% compulsory acquisition threshold, so Cue remains listed on the ASX and shareholders who did not accept still hold their CUE shares.

Why did Horizon want Cue? Horizon said the combination adds scale and an expanded, more diversified portfolio of oil and gas assets with a shared regional focus. Both companies follow a similar non-operated business model. Horizon reported that the deal lifts its production by about 15% to around 7,300 boe per day and its net reserves by more than 20% to 15.4 MMboe across five countries.

Tax implications

Capital Gains

Working out your net capital gain or net capital loss for the 2026–27 year

If you accepted the offer, disposing of your CUE shares is likely a CGT event. The A$0.008 cash per share and the market value of the Horizon shares you received both count as capital proceeds.

Scrip for scrip rollover relief is not expected to be available. Horizon's Bidder's Statement said rollover relief on the scrip consideration was only available if Horizon became the owner of 80% or more of Cue shares. Horizon finished with about 57%, so accepting shareholders will generally need to account for any capital gain or loss on the whole disposal.

To work out your net capital gain or net capital loss for the year, you must take into account:

• any other capital gains or capital losses you make in the 2026–27 income year from other transactions
• any net capital losses carried forward from earlier income years
• whether you can apply the CGT discount to any part of your net capital gain (for example, if you held your CUE shares for at least 12 months)

If you did not accept the offer, you still hold your CUE shares and have no CGT event from this takeover.

How to handle this in Sharesight

Only follow these steps if you accepted the offer. If you didn't accept, you still own your CUE shares and don't need to do anything in Sharesight.

This corporate action has two parts: a small cash payment and the share merger itself.

Step 1 — Record the cash component as a return of capital

1 – On the Overview page, select your CUE.ASX holding

2 - Select Enter a new trade or adjustment

3 - Trade type: Return of capital

4 - Amount: A$0.008 per share × your quantity held

5 - Date: 2 July 2026

6 - Select Save

Step 2 — Merge the CUE holding into Horizon Oil

1 – On the Overview page, select your CUE.ASX holding

2 - Select Edit holding tab

3 - Select Merge this holding

4 - Date of Merger: 2 July 2026

5 - New holding: Search: HZN.ASX

6 - Quantity: 0.5625 new HZN shares for every CUE share

For example, 10,000 CUE shares gets 5,625 HZN shares plus A$80.00 cash.

7 - Select Save changes

If you already hold Horizon shares, the new HZN shares will be added to your existing HZN holding.

FAQ

What happens to my shares after the takeover?

It depends on whether you accepted the offer. If you accepted, your CUE shares were transferred to Horizon and you received Horizon shares plus cash on or around 2 July 2026. If you didn't accept, you still own your CUE shares. Because Horizon ended up with about 57% (below the 90% compulsory acquisition threshold), your shares will not be compulsorily acquired, and Cue remains listed on the ASX with Horizon as its controlling shareholder.

Do I need to take any action?

The offer closed on 19 June 2026, so you can no longer accept it. If you accepted, follow the steps above to update your portfolio in Sharesight. If you didn't accept, you don't need to do anything, and your CUE holding stays as it is.

What did I receive for my shares?

Unless you are an Ineligible Foreign Shareholder or a Small Parcel Shareholder, you received A$0.008 in cash plus 0.5625 Horizon shares for each Cue share you accepted into the offer.

If you are an Ineligible Foreign Shareholder or a Small Parcel Shareholder, you did not receive Horizon shares. Instead, you received A$0.008 in cash per Cue share, plus the net proceeds from the sale of the Horizon shares you would otherwise have received. A nominee sold those shares on the ASX. In Sharesight, you can record this as a Sell trade on your CUE holding at 2 July 2026, using the total cash received, instead of following the merge steps above.

Is this takeover a taxable event?

For shareholders who accepted, it is likely a taxable event. Because Horizon did not reach 80% ownership, scrip for scrip rollover relief is not expected to be available. Consult a tax professional for personalised advice.

You can calculate your estimated tax liability using our CGT calculator. If you have more than one trade, you can add them in Sharesight and run the CGT Report to calculate your tax liability.

Will Sharesight track my cost base?

Yes, Sharesight accurately tracks your cost base. You can find your cost base information in the Historical Cost report.

If you don't have a Sharesight account, sign up here for free, enter the date you bought CUE, and follow the steps above to keep track of the cost base.

Is Cue still listed on the ASX?

Yes. Horizon holds about 57% of Cue, which gives it control but is well short of the 90% needed to compulsorily acquire the remaining shares. Cue continues to trade on the ASX under CUE.

How does this takeover affect my portfolio concentration risk?

If you accepted, your exposure has moved from Cue to Horizon, which is a larger and more diversified oil and gas producer. If you already held HZN, your concentration in Horizon will have increased. You can check your portfolio diversification using the Diversity report.

The guide above is a suggestion on how to handle the corporate action in Sharesight and is not financial or tax advice. We advise you to consult your financial advisor or broker. We also encourage you to review the official documents for full details.