5G Networks Raises Cash Offer for AuCyber Shares to $0.135
5G Networks Limited has increased its unconditional on-market cash offer for AuCyber Limited shares to 13.5 cents per share, signaling intensified acquisition efforts ahead of the February 6 deadline.
- Offer price raised from previous level to $0.135 per AuCyber share
- 5G Networks holds 10.74% voting power in AuCyber as of January 28, 2025
- Offer remains unconditional and open until February 6, 2025
- No other terms of the takeover bid have changed
- Broker Morgans Financial Limited announced the price increase
Context of the Offer
On December 20, 2024, 5G Networks Limited (ASX: 5GN) launched an on-market takeover bid for all fully paid ordinary shares of AuCyber Limited (ASX: CYB). The bid was unconditional and all-cash, aiming to consolidate 5GN's position in the cybersecurity sector. This move reflects 5GN's strategic intent to expand its footprint in technology-driven services.
Price Increase Signals Competitive Intent
On January 28, 2025, Morgans Financial Limited, acting as broker to the offer, announced an increase in the offer price to 13.5 cents per AuCyber share. This adjustment is a clear signal that 5GN is keen to accelerate shareholder acceptance and possibly pre-empt competing bids. The increase from the initial offer price underscores the value 5GN places on acquiring full control of AuCyber.
Current Shareholding and Offer Terms
As of the announcement date, 5G Networks held a relevant interest in 10.74% of AuCyber shares, equating to the same percentage of voting power. The offer remains open until the close of trading on February 6, 2025, unless extended or withdrawn in compliance with the Corporations Act 2001 (Cth). Importantly, no other terms of the offer have changed, maintaining the unconditional nature of the bid.
Implications for AuCyber Shareholders
For AuCyber shareholders, the increased offer price provides a more attractive exit opportunity. The premium suggests 5GN’s confidence in AuCyber’s future prospects and the strategic value of the acquisition. Shareholders will be weighing this improved offer against the possibility of alternative bids or holding out for a higher price.
Looking Ahead
Market watchers will be closely monitoring the acceptance rate of the offer as the deadline approaches. The increase in price could either hasten shareholder acceptance or provoke counteroffers from rival bidders, if any emerge. The unfolding dynamics will be crucial in determining AuCyber’s ownership structure and 5GN’s growth trajectory in the cybersecurity space.
Bottom Line?
The raised offer price intensifies the takeover race, setting the stage for a pivotal shareholder decision by early February.
Questions in the middle?
- Will other bidders emerge to challenge 5GN’s increased offer?
- How will AuCyber’s board and major shareholders respond to the price hike?
- Could 5GN extend the offer period or further increase the price?
