Netcomm Puts Off Decision On American Company Takeover
Australian comms equipment maker Netcomm has put off until June 20 a meeting at which shareholders will decide whether to accept the $161 million takeover offer from US-based Casa Systems.
That meeting will be chaired by Netcomm chairman and former ABC chair Justin Milne, who recommends that the shareholders accept the current offer.
The delay to the shareholder meeting follows protests by some shareholders who oppose the deal and a request from the Australian Securities and Investment Commissions (ASIC) for more information on its reasons for backing Casa’s $1.10 a share bid.
Netcomm shares closed at $1.09 on Friday, the day originally set for the shareholders meeting.
Massachusetts-headquartered Casa Systems has offered $1.10 apiece for the shares., which some shareholders believe does not represent the true worth of the company, whose products are heavily used in the buildout of the NBN, and by many major overseas companies – including in the past Apple.
Casa is believed to put great value in Netcomm’s recent sales of its self-installed 5G fixed wireless systems.
Netcomm shares have varied hugely in recent times, from as high as $3.18 in 2016 and as low as 44 cents. The disgruntled shareholders believe it remains worth considerably more than the current share price, or Casa’s $1.10 offer.
They will presumably make their feelings known at the June 20 meeting.