5G Networks Acquires Nearly 90% of AuCyber Shares in Strategic Move
5G Networks Limited has closed its on-market takeover offer for AuCyber Limited, acquiring an 89.685% stake but falling short of the 90% threshold needed for compulsory acquisition.
- 5G Networks acquires 89.685% of AuCyber shares
- Takeover offer closed on 17 February 2025
- Unable to compulsorily acquire remaining shares due to sub-90% ownership
- 5GN operates extensive digital and data network infrastructure
- Future integration plans may face challenges without full ownership
Takeover Offer Closure
5G Networks Limited (ASX:5GN) announced the close of its on-market takeover offer for 100% of AuCyber Limited (ASX:CYB) shares at 4:00pm Melbourne time on 17 February 2025. The offer, which aimed to consolidate control over AuCyber, resulted in 5GN acquiring a relevant interest and voting power in 89.685% of AuCyber's shares.
While this represents a commanding majority stake, it falls just short of the 90% ownership threshold required under section 661A of the Corporations Act 2001 (Cth) to initiate compulsory acquisition of the remaining shares. As a result, 5GN will not be able to forcibly acquire the residual minority holdings in AuCyber, leaving a small but potentially influential minority shareholder base intact.
Strategic Implications
The acquisition aligns with 5G Networks’ broader strategy to expand its footprint in the digital services and telecommunications sector. 5GN is already a significant player with a nationwide and international high-speed data network, including points of presence in major Australian cities and key global hubs such as Singapore, the USA, Hong Kong, and New Zealand.
AuCyber’s integration into 5GN’s portfolio could enhance service offerings across cloud, data networks, and managed IT services. However, the inability to compulsorily acquire the remaining shares may complicate full operational integration and strategic decision-making, as minority shareholders retain some influence.
Market and Regulatory Context
The close of this takeover offer is a significant milestone for both companies. For 5GN, it represents a substantial consolidation move in a competitive digital services market. For AuCyber shareholders, the offer provided an exit opportunity at a premium, though some chose to retain their stakes.
Regulatory compliance remains a key consideration, with 5GN adhering to the Corporations Act provisions governing compulsory acquisitions. The company’s next steps will likely involve engaging with remaining shareholders and exploring alternative strategies to increase its ownership or influence.
Looking Ahead
5G Networks’ managing director, Joe Demase, has positioned the company as a leader in empowering corporate clients through innovative digital solutions. The acquisition of AuCyber shares is expected to bolster 5GN’s capabilities, though the path to full ownership remains uncertain.
Investors and market watchers will be keen to see how 5GN navigates the minority shareholder landscape and whether it pursues further acquisitions or partnerships to solidify its market position.
Bottom Line?
5G Networks’ near-complete acquisition of AuCyber sets the stage for strategic growth — but minority shareholders still hold sway.
Questions in the middle?
- Will 5G Networks attempt to increase its stake beyond 90% to enable compulsory acquisition?
- How will minority shareholders influence AuCyber’s future direction under 5GN’s majority control?
- What integration challenges might arise from not having full ownership of AuCyber?
