Multinational web hosting provider Web.com has revised its offer to acquire Webcentral, now offering 15.5 cents per share or $18.9 million.
The new price is a 55 percent premium over its original proposal of $12.2 million or 10 cents per share, and a 142 percent premium to Webcentral’s share price on 10 July 2020.
The increase comes following the submission of a competing bid from ASX-listed telco services company 5G Networks last week, offering 1 5GN share for every 12 Webcentral shares (worth $21.6 million or 17 cents per share at the time) to buy Webcentral. As part of the scheme implementation deed with Webcentral, Web.com has a right to match any competing offer.
Web.com chief executive Sharon Rowlands said, “Our increased, all-cash offer to acquire Webcentral provides short-term, certain and substantial value to Webcentral shareholders.”
“As a leading global web technology company, Web will support Webcentral customers through its innovative web presence solution portfolio and commitment to customer service.”
Webcentral said its board is currently assessing whether Web.com’s new proposal would provide an equivalent or superior outcome to Webcentral shareholders when compared to 5G Networks’ proposal.
“In this assessment, the Webcentral board is taking in account all terms and conditions and other aspects of both proposals, including, but not limited to, timing considerations, conditions precedent, the value and types of consideration, the level of certainty as to the funding required for each proposal, the identity, reputation and financial condition of Web.com and 5G Networks and other matters affecting the probability of each proposal being completed and the outcome for Webcentral shareholders,” the ASX announcement stated.