5G Networks gears up for WCG takeover after bid green-light
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Special Report: Australian listed telco powerhouse 5G Networks’ bid for Webcentral Group (WCG) edges closer to completion after receiving unconditional board approval.
5G Networks (ASX:5GN), one of Australia’s fastest growing IT services and telecommunications companies, has just received the green light to proceed with its proposed takeover of Australian digital services provider, Webcentral Group (ASX:WCG).
Formerly known as Melbourne IT Group, Webcentral Group is an Australian digital services provider that first listed on the ASX in 1999. Interest in the company’s assets saw a move by
by Web.com in July this year to acquire Webcentral Group for a total of $12.2 million, which has now been successfully superseded by 5G Networks’ offer.
The proposed takeover bid, first announced to market by 5G Networks last month, received unanimous backing by the Webcentral Group’s Board of Directors yesterday. The Offer is now wholly unconditional.
“5GN are committed to investing in Australian digital infrastructure projects with a focus on Australian job creation and providing Australian businesses with fibre access to over 80 market leading data centres across Brisbane, Sydney, Melbourne, Adelaide and in future Perth as part of a comprehensive digital growth strategy,” 5G Networks managing director Joe Demase told Stockhead.
“5G Networks have a demonstrated pedigree in acquisitions and company turnarounds with a proven track record that has seen 7 businesses acquired since 2017 as 5GN continues to be one of the fastest growing IT services companies in the country.”
After receiving WCG director acceptances for its takeover offer, 5G Networks confirmed to market that it now has a relevant interest in approximately 34.75% of the shares in WCG.
The bid was green-lit following 5G Networks’ submission of a Bidders Statement and consideration of its Offer which was deemed to be a “superior outcome” for existing Webcentral shareholders.
“The Webcentral Board has determined that neither the Web.com counter proposal nor the revised Web.com Proposal (with the revised consideration of $0.18 per Webcentral share) would provide an equivalent or superior outcome for Webcentral shareholders as a whole compared with the 5GN Proposal,” Webcentral Group told shareholders last month.
“The Webcentral board has determined that the 5GN proposal is a superior proposal to the Web.com counter proposal and the revised Web.com proposal.”
Following its recent capital raising, 5G Networks told Stockhead it currently has approximately $55.5 million in cash and undrawn debt facilities and remains well-capitalised and expertly placed to proceed with the takeover.
“5G Networks has significant leadership expertise and success in identifying and implementing cost and revenue synergies resulting from these acquisitions,” 5G Networks managing director Joe Demase told Stockhead.
“5GN is pleased to be afforded the opportunity to draw on its turnaround expertise and acumen to return this business to a market leading position in Australia so that Webcentral’s business performance delivers shareholder value through both profitability and business growth.”
This article was developed in collaboration with 5G Networks, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.