The Australian Takeovers Panel has officially put 5G Networks' (5GN) takeover[1] of Webcentral Group on hold by issuing interim orders to push back the acceptance date of the transaction.
The interim orders require 5GN to not process any acceptances received from last Friday onwards in relation to its off-market takeover bid of Webcentral.
5GN must also extend the offer period in relation to the takeover by at least a week so it can close no earlier than November 3, the interim orders stated.
Despite this extension, the panel clarified that the interim orders still allow for Webcentral's shareholders to continue to accept or reject the takeover offer if they wish to do so.
Webcentral's board has also continued to unanimously back the deal despite the interim orders.
The panel's interim orders came in response to an application filed by investment and financial services firm Keybridge Capital that had requested for orders to compel 5GN to not process any acceptances and for 5GN to extend its bid's offer period by three weeks.
Keybridge also sought for final orders that provide Webcentral shareholders with withdrawal rights under the 5GN bid -- unless the bid is withdrawn -- and for all shares acquired in contravention of section 606 of the Corporations Act 2001 to be vested in Australian Securities and Investments Commission for sale and further disclosure.
In its application, Keybridge flagged various issues with the takeover[2], alleging that disclosures within 5GN bidder's statement and Webcentral's target's statement in relation to the 5GN conditional funding created "a highly coercive effect on shareholders to accept the [5GN] bid to cause control to pass in a manner inconsistent with that of an efficient, competitive, and informed market".
Keybridge also claimed the statements made by the Webcentral directors --