ASG receives $177m takeover bid

18/10/2012 - 13:38

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ASG receives $177m takeover bid
ASG chief executive Geoff Lewis.

A mystery suitor has made a non-binding takeover bid for Perth-based IT services firm ASG Group, valuing it at more than $177 million.

ASG announced today that a “significant participant” in IT services had offered $1.03 for each ASG share.

The company cautioned, however, that the offer was based on a number of assumptions, subject to due diligence and highly conditional.

Also today, ASG announced it had launched a 1 for 6 entitlements offer to existing shareholders, to raise $15.4 million, priced at 52 cents per share.

The offer will consist of separate institutional and retail investor components, both fully underwritten by UBS.

The offer price is a 23 per cent discount to ASG’s closing price of 67.5 cents on Wednesday.

ASG said the funds would be used to strengthen working capital, provide financial flexibility and reduce core term debt.

“The offer provides greater flexibility to continue to respond to the heightened level of tender activity as well as ensure that we are in the best possible position to engage with interested parties,” chief executive Geoff Lewis said.

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