Telecommunications system developer Superloop
(ASX:SLC) has revealed the company’s takeover bid for Australia’s largest independent internet service provider.
The NBN provider has tabled a cash and scrip offer worth $110 million to acquire Exetel. The payment package comprises a cash consideration of $100 million and a $10 million interest in Superloop.
The $381 million telco plans to finance the purchase through a $100 million equity raising consisting of an institutional placement and a pro-rata accelerated non-renounceable entitlement offer. Additionally, Exetel will receive $10 million worth of shares in the bidder.
Superloop will seek a $49 million support package from institutional investors, while the company will issue $51 million worth of shares at 93 cents per security. The offer represents an 11-cent or 10.6 per cent discount on Friday’s closing price.
Superloop commented on the transaction, “The acquisition of Exetel, Australia’s largest private ISP, adds significant scale to grow profitable share of our three customer segments”.
Exetel’s customer base of 110,000 consumer and business users is expected to boost Superloop’s market reach three-fold and accelerate the optimisation of the company’s telecommunications infrastructure.
In cost synergies terms, the two parties are poised to benefit from an operating cost reduction of $5 million per year.
Shares in Superloop
(ASX:SLC) last traded at $1.04
