5G Networks Boosts Voting Power Over 50%, Extends AuCyber Offer to Feb 17
5G Networks Limited has automatically extended its takeover offer for AuCyber Limited after increasing its voting power to over 50%, signaling a decisive step toward full control.
- 5G Networks surpasses 50% voting power in AuCyber
- Offer period extended to 17 February 2025
- Automatic extension triggered under Corporations Act
- Bidder's statement updated to reflect new closing date
- 5GN aims to consolidate digital services market presence
Background to the Takeover Bid
On 3 February 2025, 5G Networks Limited (ASX:5GN) announced an automatic extension of its on-market takeover bid for AuCyber Limited (ASX:CYB). This extension follows a significant milestone where 5GN increased its voting power in AuCyber to more than 50%, effectively granting it majority control.
The original offer, detailed in 5GN's bidder's statement dated 20 December 2024 and supplemented on 28 January 2025, was scheduled to close on 6 February 2025. However, the recent acquisition of a substantial stake triggered a mandatory extension of the offer period under section 624(2) of the Corporations Act 2001 (Cth).
Implications of the Voting Power Increase
Crossing the 50% voting power threshold is a pivotal moment in any takeover bid, as it typically signals effective control over the target company. For 5GN, this move not only strengthens its position in the digital services sector but also enhances its ability to influence AuCyber’s strategic direction.
The automatic extension means shareholders of AuCyber now have until 4:00 pm (Melbourne time) on Monday, 17 February 2025, to accept the offer. This additional time could be critical for shareholders weighing the benefits of the bid against the future prospects of AuCyber as an independent entity.
Strategic Context and Market Positioning
5G Networks is an established Australian digital services provider with a broad portfolio spanning cloud, data networks, data centres, managed IT services, and digital marketing. Its ownership of a nationwide high-speed data network and multiple data centres across major Australian cities and international hubs positions it as a formidable player in the telecommunications landscape.
Acquiring AuCyber aligns with 5GN’s mission to lead online success for its customers by expanding its service capabilities and client base. The consolidation could create synergies in network infrastructure and managed services, potentially delivering enhanced value to shareholders and customers alike.
Regulatory and Shareholder Considerations
The extension of the offer period is a regulatory requirement designed to protect shareholder interests by allowing adequate time to consider the implications of a change in control. 5GN has complied with these obligations, issuing the necessary notices to both AuCyber and the ASX.
Shareholders of AuCyber now face a critical decision window. The extended offer period may also invite competing bids or prompt strategic responses from AuCyber’s board or other stakeholders, adding layers of complexity to the takeover process.
Looking Ahead
As the offer period extends, market participants will closely monitor shareholder uptake and any further developments. The outcome will have implications not only for the companies involved but also for the broader digital services sector, where consolidation trends continue to reshape competitive dynamics.
Bottom Line?
With majority control secured, 5G Networks sets the stage for a potentially transformative acquisition in Australia’s digital services market.
Questions in the middle?
- Will AuCyber shareholders accept the extended offer or seek alternatives?
- Could a competing bid emerge during the extended offer period?
- How will 5GN integrate AuCyber’s operations post-acquisition?
