Superloop shares jump after takeover bid from Aussie Broadband
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More news: Shares in internet broadband provider Superloop jumped 11.4% to 97.5 cents each after larger rival Aussie Broadband said it had acquired 19.9% stake and made a non-indicative offer to buy the rest of its shares.
Superloop shares extended beyond the 95 cents a share offer price, indicating that the market may expect a revised offer from Aussie Broadband. The bidder's shares were down 0.7% at $4.50 each.
Aussie Broadband bids for rival Superloop
The news: Aussie Broadband has made a takeover bid for rival Superloop after acquiring a 19.9% stake in the smaller internet broadband provider.
The numbers: Aussie Broadband said it had acquired the stake in Superloop at 95 cents a share, a 33.2% premium to Superloop’s volume-weighted average price over the last three months.
Its scrip-based bid for the remaining stake has been made at the same price, offering 0.21 ABB shares for each Superloop share, valuing the target company at $467 million. Aussie Broadband shares closed at $4.53 on Friday, with Superloop at 88 cents.
The context: Aussie Broadband said it would only proceed with the takeover if it gets a unanimous recommendation from Superloop’s board. Its merger with the smaller Superloop would create “a scale player” with greater reach and infrastructure and more than one million broadband subscribers as well as three brands, the company said.
Its latest bid comes just months after a cash and stock takeover worth $258 million for voice over internet protocol (VOIP) leader Symbio.
The source: ASX announcement
