[Sydney, AUSTRALIA] Web media developer LibertyOne has turned down a
takeover offer from Florida-based digital rights management software
company CyberSentry following a
trading halt called on the Australian
Stock Exchange on Tuesday afternoon.
The company, which has been denying takeover rumors for a number of
weeks, has again confirmed that no takeover offer had been received from
CyberSentry, despite CyberSentry’s conflicting announcement last week
that it had made an official bid for the Australian company.
The company’s new chairman Nicholas Whits Whitlam said LibertyOne had
written to CyberSentry advising that in the terms contained in their
recent letter, it would be unlikely to have the Board’s support, “as it
undervalues the company and we do not believe the two businesses are
complementary,” he said.
Within the offer, CyberSentry proposed to exchange one of its own
shares for seven LibertyOne shares, placing each of the Australian
company’s shares at a value of 30 cents.
“If any such offer is received we will address it further at the
appropriate time. Our concern at this stage is to consolidate
LibertyOne’s existing business and put the right people in place to
steer the company through the next important phase of growth,” said Whitlam.
LibertyOne will undertake this task by the appointment of a number
new staff intended to reposition the company for the future. Graham
Bristow will step down from the Board and the position of managing
director, while Marcelle Anderson, general manager for strategic
investments and acting CEO, will become CEO.
LibertyOne, which has attempted to list on the Nasdaq unsuccessfully
three times, also said it will not proceed with a Nasdaq listing at this stage.
Whitlam said the changes would enable LibertyOne to refocus on
running its core business.