Interactive joins bidding war for AUCyber

IT services company Interactive is taking a shot at bidding for ASX-listed cybersecurity vendor AUCyber, offering 16.5 cents a share for the company.

This is over a fifth more than what AUCyber's the up until now preferred bidder, 5G Networks, has put on the table, but indications are that the board of the cybersecurity vendor are cold on Interactive's offer.

Interactive's bid was first announced on January 30, and comes with multiple conditions. 

These include due diligence, unanimous recommendation by the AUCyber board, and more.

When the bid by Interactive was launched, the executive chair of AUCyber, Cathie Reid, said there is no certainty it would result in a binding transaction put forward to shareholders of the cybersecurity vendor.

"The announcement does not constitute a proposal to make a takeover bid for the purposes section 631 of the Corporations Act," Reid wrote.

Friday last week, the AUCyber board released another statement about Interactive's non-binding and highly conditional proposal to acquire the company, saying it didn't consider it superior compared to 5G Networks's revised offer.

Interactive's offer being non-binding and structured with a complex scheme of arrangement that would take around four months, along with extensive, non-commenced due diligence conditions, lack of shares in AUCyber, and uncertain timing makes it unattractive, the board said.

The AUCyber board said it continues to uninamously recommend 5GN's offer, which closes at 4 pm on February 6, Melbourne time. 

After putting in disappointing trading performance results, and terminating the employment of its chief executive Peter Maloney in December, AUCyber has been a takeover target.

Brennan was in the running to buy all of AUCyber, but withdrew its bid after 5GN revised and upped its offer, which is unconditional.