ASX-listed IT services provider, ASG Group, has rejected an acquisition bid from US-based global security, aerospace and IT company, Lockheed Martin.
ASG said the revised offer to acquire its shares at $0.68 cash per share ‘materially undervalues’ the company. The revised proposal was subject to a number of conditions including further confirmatory due diligence, regulatory approvals and approval by Lockheed’s board.
In October last year, Lockheed initially put forward a proposal to acquire ASG’s shares at $1.03 cash per share.
ASG has now ceased discussions with Lockheed because it couldn't place a more superior offer on the table, however it is still in talks with a number of other parties regarding alternative proposals.
“These discussions are continuing in various forms, however there is no guarantee that there will be a binding proposal that can be put to shareholders from any party,” ASG stated.
ASG’s board said it was confident in its outlook and strategy to continue to deliver shareholder value, which is underpinned by recurring revenues from its existing managed services business; strong performance from long term contracts through to FY14; growth in Cloud services and customer relationships.
At the time of publication, ASG was trading at $0.46.