ASG suitor cuts price of bid

18/03/2013 - 11:00

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ASG suitor cuts price of bid
ASG co-founder Geoff Lewis.

ASG Group’s mystery suitor has slashed the price of its non-binding takeover offer for the Perth-based telecommunications and computing firm.

ASG initially announced in October last year that a “significant participant” in the IT services sector had offered $1.03 for each ASG share, valuing the target at $177 million.

But ASG said it had received a non-binding and conditional proposal from the group after the close of market on Friday, offering just 68 cents per share.

The revised offer values ASG at around $140.5 million.

The company said it was currently reviewing the proposal with its advisers and told shareholders to take no action.

It also said discussions were continuing with a number of other interested organisations.

“However there is no guarantee that there will be a binding proposal that can be put to shareholders from any party,” ASG said in a statement.

ASG Group shares had gained 16.7 per cent at 10:45AM, WST, trading at 49 cents. 

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