Australian article.. ========= Superloop has confirmed...

Australian article..

=========

Superloop has confirmed speculation in DataRoom on Friday that it is a takeover target.

BRIDGET CARTER

MERGERS & ACQUISITIONS EDITOR

@BridgetCarterb

12:00AM MAY 10, 2019

Superloop’s $494 million suitor Queensland Investment Corporation could be facing opposition in its efforts to acquire the telecommunications company with shareholders said to be unhappy with the price being offered for the business by the infrastructure investor.

It is understood that some see a price of $2.20 per share, rather than the $1.95 per share that QIC has offered, as closer to its value.

It comes after a sudden rally of Superloop shares following the receipt of a second QIC proposal that was not made public, raising the question why the approach was not announced earlier.

Superloop has granted QIC a period of exclusivity, but some believe that other suitors such as Brookfield, Singapore’s GIC or Temasek Holdings could be interested in making an approach once the exclusivity period with GIC ends.

Superloop’s shares closed yesterday at $1.88 each.

Superloop confirmed speculation in DataRoom on Friday that it was a takeover target. The suggestion in the market is that founder and major shareholder Bevan Slattery, who is based in Queensland, could now be looking to cash out of his investment.

Superloop, advised by Merrill Lynch Markets and Gilbert + Tobin, told the market that QIC, advised by Citi, made an offer on April 2 worth $1.90 per share when the group’s share price was $1.465. This was before following through with a higher offer of $1.95 per share on April 26.

The offer is a 30 per cent premium to the average share price over the past three months and 56 per cent premium to its equity raising in February.

QIC has had a three-week period to conduct due diligence on an exclusive basis since April 26.

Meanwhile, Telstra is still understood to be proceeding with the sale of its data centre assets through Goldman Sachs.