CSG has closed off discussions with parties interested in acquiring the company after an unsolicited offer failed to meet the board’s expectations.
Following months of speculation, CSG announced to the ASX today it had deemed any transactions resulting from the talks would not provide an outcome in the best interests of the company’s shareholders.
The announcement did little to excite investors, with CSG's shares unmoved at $1.01 at the time of publication.
The unsolicited proposal was first made on September 29 this year for $1.20 per share, and since that time CSG had been in discussion with a number of parties as to the acquisition of CSG Limited or its businesses.
A CSG spokesperson told CRN the process had been costly, disruptive and created uncertainty amongst CSG’s customers.
“Now that it has concluded it allows CSG management to focus on our growth opportunities across all of our businesses, and move into the new year with certainty and focus.”
The spokesperson declined to name the interested parties or the dollar figure of the offer.
The September offer sent rumour mills spinning, with most predicting the interested party would be a global managed print services provider.
IDC technology analyst Trevor Clarke told CRN at the time CSG’s lucrative print services division was a desirable asset. The division made $222.8 million in revenue for the last financial year, making up a large portion of an overall $388.6 million.
“Every print vendor in this market is focussed on managed print and moving to a broader services capability,” Clarke said. “There is a demand for vertical skills.”