ICS Global (ASX:ICS) advises shareholders to knock back DWY takeover

• ICS Global (ICS) asks shareholders to reject an off-market takeover bid by Dawney & Co’s subsidiary, DWY
• ICS says the offer of 20 cents each “materially undervalues” ICS shares and would see the company only receive $2.12 million
• ICS currently has a cash balance of $3.35 million, which would require shares to be sold at a minimum of 32 cents each to match the price
• The company says the “opportunistic” offer is taking “advantage” of its suspension from trading, a position its been in since June 21, 2021
• ICS shares last traded at 57.5 cents

ICS Global (ICS) has recommended shareholders reject an off-market takeover bid by Dawney & Co’s subsidiary, DWY, saying the offer “materially undervalues” ICS shares.

On December 12, DWY offered to purchase all of ICS shares for 20 cents each.

ICS responded that the offer didn’t represent a “fair price,” and would only see the company receive a total cash amount of $2.12 million.

The company said this is significantly lower than they would expect, given the company’s current cash balance of $3.35 million, which would require shares to be sold at a minimum of 32 cents each to match this price.

ICS said the offer was “opportunistic” and DWY was potentially taking “advantage” of ICS’ suspension from trading, a position it’s been in since June 21, 2021.

The company said it would put any future “attractive” opportunities to shareholders for consideration, and in the meantime, was working to “maximise value” for shareholders.

ICS Global said a further reason to reject the offer was DWY did not “articulate a clear strategy” for the company, simply that it would “conduct a review” of the company’s operations.

DWY also indicated its strategy for moving the company forward could include a “redistribution of capital.”

ICS advised shareholders to take no action in relation to the takeover bid.

ICS shares were last trading at 57.5 cents.