Troubled IT play Webcentral up 35pc on takeover offer
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Digital services microcap Webcentral Group (ASX:WCG) has surged over 30 per cent this morning after receiving a takeover offer.
US-based website building and support play Web.com Group has offered $12.2 million for Webcentral’s ASX shares.
Backed by New York-based private equity firm Siris Capital Group, Web.com first entered Australia last year by acquiring Dreamscape.
Chief exec Sharon Rowlands said this acquisition would help expand its presence Down Under.
Webcentral, which was until a few months ago known as ARQ Group, has experienced a troubled couple of years.
While shares surged 38 per cent this morning they are well off their all time highs, trading under 10 cents.
The company had been undertaking a strategic review since September 2019. Webcentral chairman Andrew Reitzer told shareholders this offer was the culmination of the review and the deal was the best way to maximise shareholder value.
“The scheme provides shareholders an opportunity to realise an immediate cash value for their investment and represents an attractive premium to the prevailing trading price of Webcentral shares,” he said.
“Webcentral’s customers will benefit from the increase in global scale to deploy unique, simple and innovative online solutions, as well as a broader product suite and service capability.”
The ACCC indicated that it won’t oppose the takeover and the deal will be voted on in mid-September.
To date, 19.6 million shares (representing 22.25 per cent of eligible votes) indicated they would vote down the deal – enough for the company to warn shareholders this morning it was not a given.
Zenith’s board reiterated to shareholders it was in favour of the deal and would vote for it.