Fresh takeover talks between Optus and listed telecoms group Amaysim are understood to have emerged in recent days on the back of news of a mooted $13 billion merger between Vodafone Hutchison Australia and TPG Telecom.
It is understood executives from the country’s second-largest telco Optus approached Amaysim’s key players in recent days about an acquisition of the company.
The parties engaged in takeover talks in 2016, as revealed by DataRoom at the time, but no deal eventuated.
However, it is understood that confirmation on Wednesday that TPG was planning a merger with Vodafone Australia has prompted Optus to spring back into action and re-engage, but this time without the assistance of advisers.
Optus is owned by Singapore telco SingTel, which is known to be reluctant to outlay money on acquisitions.
While the Optus Australia management may be eager to embark on a deal, whether one occurs depends largely on the attitude of its parent.
Shares in Amaysim rallied more than 11 per cent on Wednesday following news that TPG was in play, with the consolidation largely seen as good news for the telecoms industry.
Now it seems the talks may have triggered a chain reaction where others also have to consolidate in an effort to compete in the highly competitive Australian telco landscape.
Further insights may be offered when the company reports its full year results to the market today.
Optus acts as a wholesaler to service provider Amaysim, which also has the online energy retailer Click Energy business, which it acquired in 2017 for $120m.
Market talk suggests Origin Energy is considering a bid for Amaysim’s energy business, though Origin strongly denied suggestions it was bidding.
Amaysim specialises in providing SIM-only mobile plans and has expanded into the home internet market.
It was founded in 2010 by Australian telco expert Peter O’Connell, who recently took over the reins of the business and remains a shareholder.
Other co-founders include Rolf Hansen, Christian Magel, Thomas Enge and Andreas Perreiter.
It has a market value worth more than $200m — about half its 2015 listing value — and Mr O’Connell’s focus is on removing costs from the business in what might be preparation for a sale.
As reported by DataRoom last month, private equity firm Adamantem ran the ruler over Amaysim with adviser Gresham on hand.
This column also understands that James Spenceley was eager for the company that he co-founded, Vocus, to buy Amaysim when he was on the board about two years ago, but the former Vocus managing director, Geoff Horth, was against the idea.
Close to Optus executives is believed to be Bank of America Merrill Lynch, which is also working for Vodafone Australia, while Investec and Macquarie Capital had previously advised Amaysim, although the banks are not involved in the latest discussions.
The news of industry consolidation has come as a welcome relief for the telecoms industry, which has battled with tough competition.
Some question whether Telstra could also look at Amaysim, although Optus was a more natural fit.
The dilemma for Optus is that Amaysim is a strong cash generator for the group and because it is responsible for much of its subscriber growth, it can’t let it fall into demise, but is not an eager buyer of assets.
The other company worth watching is the listed telco Superloop, founded by Bevan Slattery.
Superloop has a domestic fibre network and undersea cable capacity, which may appeal to a market consolidator prepared to outlay more than its $546m market value.
German shareholders on Amaysim’s share register are also buying up shares in company in the event of a possible move by industry consolidators.
