ECH.ASX Completes Cue Energy Divestment
Key points
- Echelon Resources exits Cue Energy fully
- Received cash and scrip consideration
- Became a substantial shareholder in Horizon Oil
- Cash proceeds used to repay debt
Full summary
Echelon Resources Limited (ASX: ECH) has finalized the divestment of its shareholding in Cue Energy Resources Limited (ASX: CUE) to Horizon Oil Limited (ASX: HZN). This transaction, which follows the settlement of a pre-bid agreement and Horizon's takeover offer, marks the full exit of Echelon from Cue. As a result, Echelon has received the cash and scrip consideration under the offer, fully exited its Cue shareholding, and acquired a significant stake in Horizon, approximately 6.64% of its issued share capital. The transaction has provided Echelon with substantial value from its long-term investment in Cue and maintained its exposure to the combined business through its Horizon shareholding. The cash proceeds from the transaction have been primarily applied to repay the Company's debt facility, thereby strengthening Echelon's balance sheet and enhancing financial flexibility.
Outlook
Echelon looks forward to supporting Horizon as a significant shareholder.
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