Aussie Broadband reduces Superloop stake after court ruling
Make us a preferred source
Make us a preferred source on Google
The news: Aussie Broadband has cut its stake in Superloop from 19.9% to 11.99% after the Federal Court of Australia declined Aussie Broadband's “urgent” request for interlocutory injunctions against its telco rival.
The numbers: Aussie Broadband has entered into an agreement to sell 37.6 million shares in Superloop at a sale price of $1.31 per share. Superloop's shares last closed on 28 March at $1.35.
Last month Superloop instructed Aussie Broadband to sell 37.6 million shares, to bring its total shareholding to below 12%.
Superloop claimed Aussie Broadband had failed to seek the relevant regulatory approvals before acquiring a 19.9% stake in the company in February. Late last week, the Federal Court declined Aussie Broadband's request for interlocutory injunctions to set aside Superloop's notice.
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 Info-communications Media Development Authority of Singapore.
The context: Earlier in the year, Superloop rejected Aussie Broadband's $466 million takeover approach in February, before Superloop abruptly replacing Aussie Broadband as Origin Energy's wholesale internet services provider.
The sources: ASX announcement , ASX announcement
