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5GN executives take up board positions as the company acquires 50.71 per cent of embattled cyber security firm.
Following two months of uncertainty, 5G Networks has acquired a controlling interest in Australian cyber security firm AUCyber.
5GN informed AUCyber and the Australian Stock Exchange early on January 4 that it was now in possession of more than half of AUCyber’s shares.
AUCyber responded shortly before 2pm on the same day.
“5GN today disclosed voting power in AUCyber shares of 50.71 per cent,” AUCyber said in its own ASX announcement.
“Accordingly, control of the company has now passed to 5GN.
While AUCyber had initially contested 5GN’s takeover bid, telling its shareholders to refrain from selling their shares to 5GN, AUCyber is now recommending its shareholders do so, and sooner rather than later.
“The AUCyber Board unanimously recommends that all AUCyber shareholders promptly accept 5GN’s Revised Offer, in the absence of a superior proposal,” AUCyber said.
“AUCyber shareholders who do not accept 5GN’s Revised Offer risk remaining as minority shareholders
“The implications for minority shareholders are magnified in circumstances where the AUCyber Board considers that the financial viability of the Company remains uncertain, pending a restructure and recapitalisation of the Company.”
As of February 4, Craig Scroggie has stepped down from the board, while current directors Cathie Reid and Ross Walker are staying on while the Revised Offer remains in place. In addition, senior representatives of 5GN, Hugh Robertson and Joseph Demase have been appointed as directors of AUCyber.
The Revised Offer period will remain open until February 17, and will not be extended.
AUCyber’s CEO, Peter Malony, stepped down from the role on December 4. At the same time the company revealed its financial performance was not living up to expectations off the back of acquisitions made earlier in the year.
“As previously announced, AUCyber completed three strategic acquisitions in early May 2024,” AUCyber said at the time.
“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.”
Consequently, the company withdrew its FY25 Guidance.
5GN made its initial bid on December 20, offering AUCyber shareholders 11¢ per share, which was later raised to 14¢. At the time, AUCyber’s directors had said they were taking no action and recommended shareholders follow suit. Brennan IT briefly expressed interest in the company, but soon withdrew.
5GN has not revealed what its plans for AUCyber are at this stage.
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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