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Highlights
- - AUCyber (CYB) advises shareholders to await further updates on a takeover bid by 5G Networks (5GN).
- - 5GN’s offer values AUCyber shares at 11 cents, representing a modest premium to recent averages.
- - 5GN continues to expand its portfolio with strategic acquisitions and investments.
AUCyber (ASX:CYB) has informed shareholders to refrain from any immediate action following an unsolicited on-market takeover bid from 5G Networks (ASX:5GN). This offer seeks to acquire all fully paid ordinary shares of AUCyber that 5GN does not already own or control, priced at 11 cents per share.
The AUCyber board noted that the offer represents a modest premium of 0.9% based on the company’s five-day volume-weighted average price. While the proposal is still under evaluation, the board has indicated its intent to engage legal and financial advisors to explore this offer and consider alternative options.
5GN Strengthens Position
5GN already holds a 10.74% stake in AUCyber, showcasing its interest in expanding its foothold in the cyber and cloud solutions market. The bid is set to commence on 6 January 2025 and close on 6 February 2025. According to 5GN, this proposal provides AUCyber shareholders with an opportunity for immediate liquidity and cash realization of their holdings.
In recent months, 5GN has been proactive in solidifying its financial position. The company has highlighted strategic moves, including the acquisition of Security Shift, a cyber security consultancy firm. This acquisition aligns with 5GN’s goal of enhancing its service offerings to corporate and government clients.
Financial Strength and Strategic Growth
5GN’s financial stability has been bolstered by a reduced tax liability provision, which was revised downward from $14.4 million to $4.2 million in its FY24 financial statements. Additionally, the company successfully completed the sale of its Webcentral business, receiving a cash payment of $107 million and a subsequent $20 million from the sale of its joint venture stake.
Operating a robust international high-speed data network, 5GN serves over 2,500 corporate clients across major Australian cities and international locations such as Singapore, the USA, and New Zealand. The company provides managed cloud solutions, IT optimization, and data center services.
AUCyber’s Role in the Industry
AUCyber, a sovereign provider of cloud and cybersecurity solutions, has built a reputation for supporting Australian government agencies and leading organizations. Its expertise in cyber security and cloud technologies makes it an appealing acquisition target for 5GN as it seeks to enhance its market position further.
This evolving situation underscores 5GN’s strategic focus on growth and its commitment to serving an expanding client base with innovative technology solutions.
