AUCyber (ASX: CYB) has told shareholders to take no action after the company received an unsolicited and unconditional on-market takeover bid from 5G Networks (ASX: 5GN).

While noting it is still in the early stages of evaluating the offer, the board pointed out that the offer represents a modest 0.9% premium to the most recent five-day volume-weighted average price.

AUCyber also confirmed that 5GN had recently acquired a 10.74% stake in the company.

On-market purchase

5GN’s bid is to acquire all of the fully paid ordinary shares in the capital of AUCyber that it does not already own or control, for 11 cents per share.

The offer is scheduled to commence on 6 January 2025 and end on 6 February 2025, with the broker acting on behalf of 5GN instructed to commence buying AUCyber shares from today.

5GN belives the offer provides AUCyber shareholders with a simple cash exit from their holding, delivering immediate value.

The AUCyber board says it intends to engage legal and financial advisers in relation to the offer and other potential alternative options.

Solid foundation

5GN chair Natalie Mactier recently confirmed the company had received advice that the tax liability provision in its FY 2024 financial statements might be reduced from $14.4 million to $4.2m.

Ms Mactier said FY24 had been another successful year highlighted by strategic decisions aimed at strengthening the company’s financial position and creating a solid foundation for future growth.

The company received an offer for its Webcentral business in mid-2023 that matured into a sale of the business with a cash payment to 5GN of $107m plus a one-third holding in the joint venture company taking ownership of Webcentral, which it later sold for $20m.

In January 2024, 5GN acquired Security Shift, which provides cyber security consultancy, managed services and IT engineering and software development to a sophisticated client base including government departments and agencies.

Substantial client list

5GN currently owns and operates a nationwide and international high-speed data network in all major Australian capital cities, Singapore, the USA, Hong Kong and New Zealand servicing more than 2,500 corporate clients.

The company also offers managed cloud solutions, as well as optimisation of IT and network environments through its data centres across Australia.

AUCyber is a sovereign provider of cloud solutions and cyber security services, offering support to Australia’s leading organisations and government agencies.