AUCyber announced on December 24 that it had received a takeover proposal from Brennan, days after receiving an unsolicited bid by 5G Networks on December 20.
Brennan proposal is to offer $0.14 in cash per share for all ordinary shares in AUCyber, which represented a 28 premium over the company’s five-day volume-weighted average price of $0.11 as of 19 December, 2024.
Brennan’s proposal has several conditions, including due diligence which was expected to conclude before 5G Networks’ offer closed at 4pm on 6 February 2025.
Meanwhile, 5G Networks offer is $0.11 per share for all AUCyber’s ordinary shares.
On January 3, AUCyber directors recommended shareholders reject the 5G Networks offer, citing the lack of an adequate premium for control of the company. The board also needed time to see if Brennan’s proposal, or any other proposal, progressed to a binding offer shareholders might accept.
AUCyber is also testing interest of a “small number of parties that appear to be strategically aligned and could be interested in potentially making an offer for AUCyber”.
The takeover bids followed AUCyber’s announcement on December 4, 2024, that its trading performance had been below expectations and it did not expect to meet its FY25 revenue guidance.
Revenues in AUCyber’s cyber security, cloud solutions and managed services businesses had “fallen short of expectations”. This was “principally due to slower than expected new customer uptake during the period of integration, in addition to recent customer churn.”
AUCyber announced the resignation of CEO and managing director Peter Maloney on December 4 and the termination of his employment on December 20. The company’s chair Cathie Reid assumed the caretaker role of executive chair.
The company completed the acquisitions of PCG Cyber, Venn IT Solutions and Arado on April 30, 2024.
-1.jpg&w=100&c=1&s=0)
.png&w=100&c=1&s=0)
