CSG receives takeover offer

IT services company receives offer of $1.20 per share

ASX-listed IT services company CSG (ASX: CSV) has informed the market that it has received a non-binding off-market takeover offer to acquire all of the issued fully paid shared of the company.

According to the company, the proposed price per share is $1.20 with no adjustment for the final dividend of $0.03 slated to be paid per share on 4 October.

“The CSG Limited board has not formed a view with respect to the proposal and recommends shareholders take no action at this time,” an ASX statement on the takeover offer said.

CSG said it had engaged Macquarie Capital as its financial adviser in light of the offer.

Legal firm DLA Piper Australia had been engaged as the company’s legal adviser.

“The Company ... will make further a announcement un due course,” the statement said.

The announcement of the takeover offer follows the company’s August announcement of solid revenue and profit increases for the year to 30 June 2011.

CSG recorded revenue growth of 39.9 per cent year-on-year to $388.6 million, and net profit after tax growth of 26.2 per cent to $40.4 million. Earnings before interest, tax, depreciation, and amortisation (EBITDA) grew 18.5 per cent to $70.3 million.

In July, CSG picked up an IT services deal with West Australian manufacturing and construction firm, AGC, for the overhaul of its IT systems to increase automation and efficiency.

In April, CSG planned to raise $40 million in new equity through a rights issue and an entitlement offer. The company said it had intended to place $10 million worth of shares to institutional investors and conduct a one-for-nine rights issue to raise the remainder.

Follow Tim Lohman on Twitter: @Tlohman

Follow Computerworld Australia on Twitter: @ComputerworldAU

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