Uniti Wireless shares have piled on the gains as its moves to take over a fellow ISP

UNITI Wireless is looking to buy out a listed rival just weeks after listing on the ASX itself, confirming speculation it had made an offer to take over Spirit Telecom.

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Uniti Wireless is looking to buy out a listed rival just weeks after listing on the ASX itself, confirming speculation it had made an offer to take over Spirit Telecom.

After dipping sharply after listing on the ASX on February 13, and sacking its co-founders a day later, Uniti stock has since rocketed, closing up almost 10 per cent at 46c.

The stock traded as high as 51c, meaning it has tripled in under three weeks from 17c per share.

Adelaide-based Uniti said it had made a “non-binding, indicate offer’’ to buy Spirit, prompting that company’s shares to add more than 50 per cent, closing at 18.5c

Spirit’s market capitalisation is $29.4 million, compared with Uniti’s $55 million.

Uniti said that “no definitive agreement on any matters has been reached’’.

It was not disclosed whether it would be a cash or scrip offer, however Uniti’s cash balance is well below Spirit’s market value.

Both companies are in the business of providing alternatives to the NBN via wireless internet.

Uniti recently employed Vaughan Bowen, formerly of M2 Telecommunications and Vocus Group, who pumped more than $900,000 of his own money into Uniti shares and said his remit was to grow the company through mergers and acquisitions.

Melbourne-based Spirit’s latest financial results for the first half of the year show revenues of $8.2 million, up 1 per cent, and underlying EBITDA of $362,000, but a net loss of $487,000.

Uniti also announced on March 25 that it had a new substantial holder in Cornish Group Investments.

The firm, which bought 10 million shares in Uniti, is the investment vehicle of Philip Cornish, who established Vodafone Australia in 1990 and was a director of Vodafone Australasia until 2001.

Mr Cornish and Mr Bowen are both on the board of the Telco Together Foundation.

More than 4.5 million Uniti shares were traded.

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