IT services company, CSG (ASX: CSV), has put to bed any potential acquisitions, following a non-binding off-market offer in September, citing the process was not in the best interest of its shareholders.
The company also received an offer of $340 million from an unnamed bidder in October, but continued to advise shareholders to take no action in relation to the external interest in the company.
“CSG Limited advises that following engagement with the various parties that have expressed interest in acquiring CSG Limited or CSG’s businesses, the CSG Board has decided to close the process in relation to potential acquisition transactions,” CSG secretary, Kim Clark, said in a statement to the ASX.
“This decision has been made because the Board has concluded that the current process will not result in a transaction which is in the best interest of CSG shareholders.
“In this regard, the indicative non-binding proposal announced on 29 September, 2011 at $1.20 per CSG share did not result in an offer.”
According to the ASX statement, the initial proposal to acquire all of CSG’s shares led to a process of engagement with all interested parties in CSG businesses.
“This process has been costly, and despite best efforts, disruptive to both management and staff and created uncertainty with CSG’s customers.”
The closure of the process will enable the company to focus on its strategy for 2012, Clark said.
The company engaged Macquarie Capital as its financial adviser following the offer, along with legal firm DLA Piper Australia as its company’s legal adviser.
The firm recently penned a deal with engineering company, Ausenco, for the implementation of an Oracle enterprise resource planning (ERP) system.
Under the contract, CSG will work with Ausenco to implement the platform, which commenced in October this year.
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