From CMCMARKETS.COM.AU today Vocus Agrees to A$3.5 Billion Takeover by MIRA Consortium -- Update SYDNEY--Vocus Group Ltd. has entered into a takeover scheme with a consortium including Macquarie Infrastructure and Real Assets Holdings Pty Ltd. that values the fixed-line communications provider's equity at 3.50 billion Australian dollars (US$2.69 billion).
The ASX-listed company's board unanimously recommended shareholders accept the A$5.50/share all-cash offer. The offer represents a 26% premium to the Vocus share price prior to the proposal being announced.
Vocus received the initial proposal from MIRA and its managed funds on Feb. 8. The terms remained the same when the Aware Super pension fund joined the consortium on Feb. 23.
The scheme implies an enterprise value of A$4.60 billion, calculated as a multiple of 12 times Ebitda for the 12 months through December.
Last month, Vocus reported an 11% fall in underlying first-half profit but reiterated its fiscal 2021 Ebitda guidance and said its three-year turnaround was on track.
"This transaction clearly validates the company's strong operational and financial performance and recognizes that we are executing the strategy that we set out in 2018," Managing Director and Chief Executive Kevin Russell said.
Prior to the offer, Vocus has been preparing to spin off its New Zealand communications and energy business via an initial public offering by the end of its 2021 financial year. It had planned to reduce debt and invest in its core Australian business, but Chairman Bob Mansfield on Tuesday said shareholder feedback toward the proposal had been overwhelmingly positive.
Vocus has not paid a dividend since fiscal 2017 amid fixed-line revenue headwinds from the Australian government-owned national broadband network.
Vocus shares last traded at A$5.00.
UWL Price at posting:
$2.20 Sentiment: Hold Disclosure: Held
