LibertyOne has announced that CyberSentry has issued a formal bid to acquire all shares in LibertyOne via a share swap.
LibertyOne received formal correspondence from CyberSentry this afternoon.
CyberSentry's proposal awaits approval from federal Treasury and CyberSentry's investors.
LibertyOne continued to advise all shareholders to "take no action" on CyberSentry's takeover bid, a company statement said.
Frank Kristan, chairman and CEO of LibertyOne, was optimistic over the proposed buy-out. He said the takeover would accelerate the company's growth strategy for VisionNet, LibertyOne's wholly owned CyberSentry subsidiary that created the Pat Rafter website, according to a LibertyOne spokesman.
The merger would also spur growth opportunities in Asia, the US and Europe, Kristan said.
CyberSentry confirmed on Monday that it would make a takeover bid for all of LibertyOne's outstanding shares, exchanging 54 million for LibertyOne's 378 million remaining shares.
CyberSentry will have 51 per cent ownership of the merged companies, and LibertyOne a 49 per cent stake.
The offer would see one CyberSentry share exchanged for seven LibertyOne shares. Consequently, LibertyOne shares would be worth $0.30 each. LibertyOne's shares are currently trading at $0.32 on the ASX.
LibertyOne shares traded between $0.22 and $0.26 per share in 1999. CyberSentry's traded between $US0.88 and $7.00 each last year on the Nasdaq.