- 5G Networks’ (5GN) proposed takeover of Webcentral Group (WCG) has become unconditional after outbidding a competing offer from Web.com
- Despite Web.com upping its original all-cash offer from 15.5 cents per share to 18 cents per share, Webcentral shareholders have voted in favour of 5G Networks’ competing share-for-share bid
- As a result, every 12 Webcentral shares will now be exchanged for one share in 5G Networks, with the offer expected to close on October 27
- Today, shares in 5G Networks are up two per cent, trading for $1.79 per share
- Meanwhile, Webcentral Group is trading 6.67 per cent higher, with shares worth 16 cents
5G Networks’ (5GN) proposed takeover of Webcentral Group (WCG) has become unconditional after outbidding a competing offer from Web.com.
5G Networks first revealed its interest in Webcentral last month, proposing a share-for-share deal which would exchange every 12 Webcentral shares for one share in 5G Networks.
Working in the telecommunications sector, 5G Networks believes that acquiring a digital services provider like Webcentral will advance both businesses’ expansion efforts.
It seems Webcentral shareholders thought similarly, giving the bid its requisite votes before the offer period was expected to close on Friday.
5G’s offer for Webcentral came into direct competition with an all-cash offer from Web.com, which was first announced back in July. Despite Web.com upping its bid in the eleventh hour from 15.5 cents per share to 18 cents per share, Webcentral shareholders have voted in favour of the share-for share offer over the lure of hard cash.
As 5G already had a 10.7 per cent stake in Webcentral, less than 40 per cent of the remaining vote was required to make the offer unconditional. Then, last month, 5G Networks received a further 19 per cent in committed support from Webcentral’s board, which threw its unanimous endorsement behind the offer.
The deal was expected to finalise earlier this month, but the offer period was extended to account for postage delays related to the COVID-19 pandemic.
With all relevant votes now cast, the offer has become unconditional and is scheduled to closed on 27 October.
Today, shares in 5G Networks are up two per cent, trading for $1.79 per share. Meanwhile, Webcentral Group is trading 6.67 per cent higher, with shares worth 16 cents at 10:47 am AEDT.