Cegeka’s acquisition of CTG postponed for the third time

Cegeka’s acquisition of CTG postponed for the third time

Update, 6/11/2023, 10:51 am: Cegeka’s takeover of sector peer CTG is delayed again. The deadline for contributing the shares is postponed for the third time. The parties set the new date of December 12.

Postponement is again necessary because the takeover has still not received all approvals from authorities. More specifically, the Limburg CSSF and the American CFIUS have yet to rule on the case. In the meantime, the Belgian Competition Authority has already given its blessing. In the press release, the companies do not rule out that the acquisition will again be delayed after December 12.

The parties do not foresee any problems regarding the required percentage of shares that Cegeka must acquire from CTG to complete the takeover. However, the limit of 66 percent of shares has not been reached. According to the report, Cegeka acquired approximately 56.9 percent of the shares. This is despite earlier reports that the company could already obtain 76.5 percent of the shares. This indicates that in the meantime, more shares have been validly withdrawn from the takeover bid.

Original, 25/09/2023, 11:48 am: Cegeka is postponing the acquisition of CTG until October 13. The Belgian IT group is waiting for approval from the Belgian Competition Authority, among others.

Cegeka is extending the previously made bid for CTG until October 13. Previously, the offer stood until September 20. On September 21, the parties issued a joint press release to clarify the state of affairs. The future for the acquisition does otherwise look favourable.

Sufficient shares

The U.S. digital transformation specialist, CTG, is publicly traded. To initiate a takeover, it was stipulated that the Belgian IT group needed to hold 66 percent of CTG’s shares. That is surpassed, as Cegeka could already secure 76.5 percent of the shares.

A sum of $10.50 was paid per share. It was previously known that the full acquisition would cost Cegeka $170 million.

Support from CTG

The U.S. consulting firm further indicated its support for the acquisition. Earlier, some shareholders of the company would have gone to court to block the takeover, De Tijd reports. According to the complaint, the market would have been insufficiently informed. These problems have since been resolved.

With enough shares in hand and the support of CTG, it only remains to wait for the verdict of some authorities. Among others, the Belgian Competition Authority has not yet ruled on the takeover. Depending on the situation, the extension may still be shortened.