AUCyber Limited (ASX:CYB) Responds to 5G Networks’ Takeover Bid
5G Networks’ Takeover Offer
AUCyber Limited (ASX:CYB) has formally announced its response to the unsolicited takeover bid from 5G Networks Limited (5GN). The bid proposes acquiring all AUCyber shares at a price of $0.11 (11 cents) each. In relation to the offer, AUCyber’s Board has released a Target’s Statement, highlighting their recommendation to shareholders to reject the offer.
Directors’ Recommendation
The Board’s unanimous recommendation against the offer is based on several key points. Firstly, 5GN’s proposal represents a modest premium of only 7.3% over the share price prior to the bid announcement, significantly lower than typical premiums in control transactions for Australian companies. The Target’s Statement explicitly advises shareholders to consider a competing proposal from Brennan VDI Pty Ltd, which offers $0.14 (14 cents) per share, a premium of 27.3% over 5GN’s offer.
Executive Chair Cathie Reid emphasised, “The current offer does not provide adequate compensation for control of AUCyber. We encourage shareholders to consider the merits of the competing proposal and the potential for a better offer in the near future.”
Future Considerations for Shareholders
Shareholders are advised to remain patient and informed, as they are not required to take immediate action regarding the takeover bid. The offer will remain open until 4:00 PM (Melbourne time) on 6 February 2025, unless extended. AUCyber’s management will continue to monitor developments and communicate with shareholders on all relevant updates.
The Target’s Statement and further details on the takeover bid can be accessed through the company’s announcements on the ASX website.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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