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The Australian digital services firm has announced an unconditional, on-market takeover bid of the struggling cyber security company.
5G Networks (5GN), an Australian-owned digital services company, has announced its intention to take over Australian cyber security company AUCyber.
The company shared its intentions via an ASX announcement on 20 December, saying it is making an unconditional, on-market takeover bid, with the intention of purchasing all available shares for 11¢ per share.
Shares in AUCyber were valued as high as $7.52 in February 2021, but share value has been steadily declining since then. On 19 December, share prices dropped to 10¢ but have risen to 12¢ at the time of writing.
The 5GN offer will come into effect on 6 January 2025 and last until 6 February unless otherwise extended. Morgans Financial Limited will be acting as the broker for share acquisition.
“The offer provides CYB shareholders with a simple cash exit from their holding in CYB that delivers immediate value,” 5GN said in its ASX announcement.
“Accepting CYB shareholders should expect to be paid cash on a normal T+2 basis.”
On 19 December, 5GN announced it had become a substantial holder of AUCyber shares, with a holding of 10.74 ordinary shares in the company.
The takeover bid comes at the same time AUCyber announced the immediate termination of managing director and CEO Peter Maloney. Cathie Reid will take on a caretaker role.
AUCyber’s three non-executive directors themselves own 40.6 per cent of the company and have indicated they will be taking no action in relation to the share offer while directing shareholders to follow suit.
“The board intends to shortly engage legal and financial advisers in relation to the offer and other potential alternative options to maximise shareholder value,” AUCyber said in its own ASX announcement.
“The board will continue to evaluate the offer and will respond to shareholders through a formal target statement in the coming weeks.”
AUCyber announced the resignation of Maloney earlier this month, at the same time as it reported a poor financial performance in the four months leading up to October 2024.
“As previously announced, AUCyber completed three strategic acquisitions in early May 2024,” AUCyber said in a 4 December ASX announcement.
“Whilst the four-way merger of AUCloud, PCG Cyber, Venn IT, and Arado businesses have recently been integrated, the performance of the newly formed group is unfortunately below expectations.”
David Hollingworth has been writing about technology for over 20 years, and has worked for a range of print and online titles in his career. He is enjoying getting to grips with cyber security, especially when it lets him talk about Lego.
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