The West

ASG managing director Geoff Lewis. Picture: Steve Ferrier/The West Australian.
ASG managing director Geoff Lewis. Picture: Steve Ferrier/The West Australian.

IT services company ASG Group says it has received a takeover offer, valuing the company at about $180 million.

The company announced this morning that it had received an indicative, non-binding and conditional proposal to acquire 100 per cent of its issued capital for $1.03 a share.

However ASG said the offer was subject to a number of assumptions and was "uncertain, subject to due diligence and highly conditional".

"While ASG remains in discussions regarding the proposal and limited due diligence information has been provided, there is no guarantee that a binding proposal will be forthcoming," the company said in a statement.

The company did not disclose the identity of the bidder.

ASG also announced today a one-for-six rights issue to raise $15.4 million to "pursue its growth strategy and investigate all options on behalf of shareholders, including alternative proposals".

Part of the proceeds would also be used to pay down debt.

The rights issue will comprise an institutional component to raise about $3.1 million and a retail component to raise $12.3 million, both through UBS.

ASG chief executive Geoff Lewis said the offer would provide greater flexibility for the company to continue to respond to the heightened level of tender activity as well as ensure that it was in the best possible position to engage with interested parties.

The non-renounceable rights issue will be priced at 52 cents, a 23 per cent discount to its last traded price of 67.5 cents.

Shares in the company have been placed in a trading halt.

The West Australian

Latest News From The West

Roy Hill boss Barry Fitzgerald says the iron ore producer will be looking to recruit another 500-600 mineworkers over the next 18 months as the company ramps up its Pilbara operations.

Popular videos