Webcentral Group announces that the head of 5G Networks, Joe Demase will be taking over the leadership of the organization as its CEO temporarily ahead of the acquisition. The appointment of Demase has been made after the repayment of a few of its debts using a ‘secured’ loan from 5G Networks (which was part of the latter’s terms in its bid).
Demase will be replacing Brett Fenton, who held the position since February 2020, as it presently battles the Takeover Panel to get the company previously known as Arq Group.
5GN, Keybridge Capital & the Takeover Panel
After a complaint was lodged by Keybridge Capital (an investment and financial services firm), 5G Networks was ordered by the Takeovers Panel President to extend the offer period by a week (from October 27th to November 3rd). Last week, Keybridge raised concerns to the Takeovers Panel on network’s bid for Webcentral’s acquisition, alleging that the telco’s statements “create a highly coercive effect on shareholders to accept the bid to cause control to pass in a manner inconsistent with that of an efficient, competitive and informed market”.
Keybridge is a major shareholder of Webcentral with a 9% share on its plate. It also alleged that the proposal of 5GN was “anti-competitive and contravened the Corporations Act 2001”. The Takeover Panel siding with Keybridge, ordered 5G Networks to not process any acceptances received on & from October 23rd 2020, with regards to its Webcentral acquisition bid.
More on the announcement
Board Chairman Andrew Reitzer has also stepped down from his position. However, he will stay on as a part of the independent board committee of Webcentral that’ll oversee the acquisition. The present 5G Networks independent Director, Joe Gangi has named as his replacement as the Board Chairman.
These changes have been made despite 5GN’s yet not officially the owner of Webcentral. The telco provider was ordered by the Takeover Panel to push the acquisition offer period by another week.
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