Aussie Broadband gets approval to increase stake in telco rival Superloop
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The news: Aussie Broadband (ABB) has received approval to increase its stake in telco rival Superloop, after being instructed to lower its shareholding earlier this year.
The numbers: The Info-communications Media Development Authority of Singapore (IMDA) has granted unconditional approval for ABB to increase its stake in Superloop to up to 19.9%.
Under Superloop's constitution, a person or company must not control between 12% and 30% of the voting power, without prior written approval of the IMDA.
The context: The IMDA noted that the ABB's acquisition is unlikely to substantially lessen competition, and that ABB and Superloop do not participate in the same telecommunications markets in Singapore.
Superloop had previously directed ABB to reduced its shareholding in the company, claiming that ABB had failed to seek the relevant regulatory approvals before acquiring its 19.9% stake in February.
In April, ABB sold 37.6 million shares in Superloop, cutting its stake from 19.9% to 11.99%, after the Federal Court of Australia declined ABB's “urgent” request for interlocutory injunctions against its telco rival.
The source: ASX announcement
