5G Networks (ASX:5GN) - Non Executive Director, Jason Ashton
Non Executive Director, Jason Ashton
Source: Computerworld
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  • Details of 5G Networks’ (5GN) proposed Webcentral (WCG) buy were released to the market today
  • Under the offer, 5GN wants to buy Webcentral shares for 17.7 cents a pop, valuing the company at $21.6 million
  • That bid represents a significant premium to the 10 cents per share scheme of arrangement lobbed by webtech developer Web.com back in mid-July
  • At present, 5GN has a 10.1 per cent stake in Webcentral, and has announced it will use its interest to vote against the Web.com bid
  • However, Keybridge Capital — another significant shareholder with a 9.24 per cent holding — has told Webcentral it intends to vote against the 5GN scheme
  • In addition to today’s news, 5G Networks has completed its $27.5 million placement
  • Now, roughly 15.28 million new shares will be issued, settled on September 9, and begin trading by September 10
  • 5GN will use the fresh capital to fund its takeover proposal, should it go ahead
  • Despite the announcement, 5GN shares closed 6.57 per cent in the red on Monday, priced at just under $2 per share

Details of 5G Networks’ (5GN) proposed Webcentral (WCG) buy were released to the market today.

Under the offer, 5GN wants to buy Webcentral shares for 17.7 cents a pop, valuing the company at $21.6 million. When rumours of the proposed takeover began to emerge late last week, the publicly-listed target boasted a $13.4 million market capitalisation.

That bid represents a significant premium to the 10 cents per share scheme of arrangement lobbed by webtech developer Web.com back in mid-July.

At present, 5GN has a 10.1 per cent stake in Webcentral, and has announced it will use its interest to vote against the Web.com bid.

However, Keybridge Capital — another significant shareholder with a 9.24 per cent holding — has told Webcentral it intends to vote against the 5GN scheme.

In addition to today’s news, 5G Networks has completed its $27.5 million placement.

Via the capital raise, a wide range of outstanding and emerging institutional investors subscribed for shares at $1.80 a pop.

Now, roughly 15.28 million new shares will be issued, settled on September 9, and begin trading by September 10. 5GN will use the fresh capital to fund its takeover proposal, should it go ahead.

In its announcement on the scheme today, Webcentral advised shareholders to take no action, but did state the offer is a superior bid to the one proffered by Web.com.

Despite the announcement, 5GN shares closed 6.57 per cent in the red on Monday, priced at just under $2 per share.

WCG by the numbers
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