The directors of ASX-listed cyber security vendor AUCyber are now recommending that shareholders accept a revised and improved bid from Melbourne's 5G Networks, of 13.5 cents a share after rejecting an earlier, lower offer.
5GN's offer represents a premium of 31.7 per cent to the trading price per share of $0.1025 as of December 19 last year.
At the same time, Brennan, which had tabled a conditional offer of 14 cents a share in cash has withdraw the bid, AUCyber told the ASX.
Each AUCyber director now intends to accept 5GN's revised offer, in the absence of a superior proposal.
With 163,563,360 shares issued, the 5GN bid values AUCyber at $29.6 million.
NEXTDC Ventures Holdings, a subsidiary of the data centre builder and operator, holds nearly 52.3 million shares in AUCyber.
Chief executive of NEXTDC, Craig Scroggie, is a non-executive dirrector of AUCyber.
AUCyber warned that its financial performance for the first four months of its fiscal 2025 year were below its board's expectations, leading the company to withdraw its guidance for the FY25 year.
Revenues in key areas such as cybersecurity, cloud solutions and managed services have all fallen short for the company, meaning its financial viability remains uncertain.
"Whilst the company is evaluating strategies and initiatives to optimise its cost base, generate greater higher margin revenues and ultimately reduce its rate of cash burn with an objective of achieving sustainable profitability, there can be no certainty that these strategies will be sufficient to underpin the ongoing financial viability of the company in its current form."
The cybersecurity company does not have a permanent chief executive after it terminated Peter Maloney's employment in December last year.
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