CyberSentry offers Liberty
- 26 July, 2000 12:37
LibertyOne announced last week that US-based Internet venture CyberSentry has issued a formal bid to acquire all shares in LibertyOne via a share swap.
The company received formal correspondence from CyberSentry late last week.
According to a local spokesperson for LibertyOne, the company had become aware on Monday last week of Nasdaq reports that a bid by CyberSentry Incorporated had been placed to acquire all LibertyOne shares through a share exchange.
However, the local spokesperson, Christopher Muldoon, maintained the company had not received any formal correspondence on the purported offer from CyberSentry.
"We're not saying it won't happen," he said. "We really can't make hypothetical [statements] about this announcement."Liberty One would "sit tight and act accordingly" until it received a formal takeover proposal from CyberSentry, Muldoon said. "We will take action if and when it happens," he added.
CyberSentry confirmed on Monday it would make a takeover bid for all of LibertyOne's outstanding shares, exchanging up to 54 million for LibertyOne's 378 million remaining shares.
CyberSentry's proposal awaits approval in the US from the Federal Treasury and CyberSentry's investors.
According to the proposal, the offer would see one CyberSentry share exchanged for seven LibertyOne shares. Consequently, LibertyOne shares would be worth $0.30 each. LibertyOne's shares are currently trading at $0.32 on the ASX.
LibertyOne continued to advise all shareholders to "take no action" on CyberSentry's takeover bid, a company statement said.
Frank Kristan, chairman and CEO of CyberSentry, was optimistic over the proposed buyout. He said the takeover would accelerate the company's growth strategy for VisionNet, LibertyOne's wholly owned CyberSentry subsidiary that created the Pat Rafter Web site, according to a LibertyOne spokesman.
The merger would also spur growth opportunities in Asia, the US and Europe, Kristan said.
CyberSentry will have 51 per cent ownership of the merged companies, and LibertyOne a 49 per cent stake.
The offer would see one CyberSentry share exchanged for seven LibertyOne shares. Consequently, LibertyOne shares would be worth $0.30 each. LibertyOne's shares are currently trading at $0.32 on the ASX.
LibertyOne shares traded between $0.22 and $0.26 per share in 1999.
CyberSentry's traded between $US0.88 and $7.00 each last year on the Nasdaq.