Webcentral Group, the remnants of Arq Group that was formerly the company known as Melbourne IT, has decided to proceed with a takeover from 5G Networks (5GN).

In July, Siris Capital Group's Web.com offered Webcentral AU$0.10 per share, approximately AU$12 million, to wholly acquire[1] what was left of the company.

5G Networks then raised its paddle, bidding AU$0.177 per share[2] last week for a deal valued at around AU$21.6 million.

Web.com upped that offer on Tuesday to AU$0.155 per share, with the AU$18.9 million total to be paid in cash[3]. On Thursday, Web.com revised its proposal to AU$0.18 per Webcentral share.

But opportunity trumped cash, with the board determining the 5GN proposal was superior to the one made by Web.com and as a result has entered into a bid implementation deed with 5GN.

"The Webcentral board has determined that neither the Web.com counterproposal nor the revised Web.com proposal … would provide an equivalent or superior outcome for Webcentral shareholders as a whole compared with the 5GN proposal," the company told shareholders on Thursday night.

Under the terms of the 5GN offer, Webcentral shareholders will be offered one 5GN share for every 12 Webcentral shares. Based on there being just over 122 million shares on issue, the sale price sits at around AU$19 million.

"The offer consideration represents approximately: AU$0.16 per Webcentral share, and implies an equity value of Webcentral of approximately AU$19.5 million based on the 30-day VWAP of 5GN shares to 16 September 2020 of AU$1.92 per 5GN share; and AU$0.153 per Webcentral share, and implies an equity value of Webcentral of approximately AU$18.7 million based on the 8-day (all trading days following 5GN's AU$27.5 million placement) VWAP of 5GN shares to 16 September 2020 of AU$1.83 per

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