5G Networks Raises AuCyber Cash Offer by 31.7% to 13.5 Cents per Share
5G Networks Limited has raised its unconditional cash offer for AuCyber Limited shares to 13.5 cents, representing a significant premium and a compelling exit opportunity for shareholders ahead of the February 6 deadline.
- 5GN increases cash offer for AuCyber shares to 13.5 cents
- Offer represents a 31.7% premium to pre-offer closing price
- Offer remains unconditional with no planned extension beyond February 6, 2025
- Shareholders urged to accept promptly to secure immediate cash payment
- Risks highlighted for shareholders who do not accept, including liquidity and compulsory acquisition
Offer Price Increase Signals Stronger Bid
5G Networks Limited (ASX: 5GN) has officially increased its unconditional on-market cash offer for all remaining shares in AuCyber Limited (ASX: CYB) to 13.5 cents per share. This move, announced in a First Supplementary Bidder's Statement lodged on January 28, 2025, represents a substantial premium of 31.7% over AuCyber's closing price on December 19, 2024, the last trading day before the original offer announcement.
The increased offer price also reflects a 23.9% premium to the five-day volume weighted average price (VWAP) of AuCyber shares leading up to the initial bid. This enhanced valuation underscores 5GN's commitment to securing full ownership of AuCyber and provides shareholders with a compelling reason to accept the offer promptly.
Unconditional Offer and Closing Deadline
The offer remains unconditional, meaning there are no conditions attached to the acquisition of shares. Shareholders who accept will receive immediate cash payment, settled within two trading days of acceptance. 5GN has made clear that it will not extend the offer period beyond 4 pm Melbourne time on Thursday, February 6, 2025, nor will it increase the offer price further.
This firm deadline places pressure on AuCyber shareholders to make timely decisions. The simplicity of the acceptance process, placing a sell order on-market at the offered price through a broker, further facilitates swift shareholder action.
Risks for Shareholders Holding Out
5GN's supplementary statement also outlines potential risks for shareholders who choose not to accept the offer. Should 5GN acquire more than 50% but less than the compulsory acquisition threshold, remaining shareholders could face reduced liquidity and a diminished shareholder spread, potentially triggering ASX suspension or delisting of AuCyber shares.
In addition, if compulsory acquisition rights are exercised, remaining shareholders will receive the offer consideration later than those who accepted early, adding a temporal disadvantage. This scenario highlights the strategic advantage of accepting the offer promptly to realise certain value.
Market and Strategic Implications
This increased offer price and the firm closing date signal 5GN’s determination to consolidate its position in the telecommunications network services sector through full ownership of AuCyber. For the market, this development may reduce AuCyber’s free float and liquidity, impacting trading dynamics post-offer.
Investors and analysts will be watching closely to gauge shareholder acceptance rates and any market reaction as the deadline approaches. The outcome will shape the future ownership structure and strategic direction of AuCyber within 5GN’s broader portfolio.
Bottom Line?
With a firm deadline and no further price increases planned, AuCyber shareholders face a clear choice: accept now or risk diminished liquidity and delayed payouts.
Questions in the middle?
- What percentage of AuCyber shares have been tendered so far under the offer?
- Will 5GN achieve the compulsory acquisition threshold to fully delist AuCyber?
- How will the reduced shareholder spread affect AuCyber’s post-offer market liquidity?
