A major battle is now on for internet services provider OptiComm, with Aware Super — previously First State Super — offering $6.50 a share, trumping the latest bid by Uniti Group.
The pitch values OptiComm at $645m.
However, most expect Uniti to match the proposal, with a bidding war about to erupt.
Uniti has three days to match the offer, but could leave it longer if it is prepared to waive the break fee, which is not considered a substantial sum of money.
It is understood Aware’s takeover bid has an acceptance condition of just over 50 per cent.
Uniti in June proposed a scheme of arrangement, offering $5.10 a share, equating to $530m, or $540m of cash and scrip, factoring in a dividend payment.
OptiComm announced on September 8 that it had received a bid of $5.85 a share or $609m from Aware.
Uniti matched that offer on September 15, with a price at the time equating to $5.85 a share, comprising $4.835 a share cash and 0.80537 Uniti shares for each OptiComm share.
The OptiComm board recommended the Uniti bid that matched the value of the earlier approach from Aware Super.
Uniti also secured a 19.5 per cent interest in OptiComm shares by way of call option and share purchase agreements, which on the face of it looked to threaten Aware Super’s ability to gain control via a scheme of arrangement.
However, a play for the company by way of a takeover bid, where shareholders bid into the offer rather than voting on the transaction, was always understood to be in consideration.
While some suspected Aware Super may vie for Uniti, it is now not thought to be under consideration, given that business generates about half of its revenue from being a service provider and Aware Super is keen to embark on an infrastructure play.
OptiComm is Australia’s largest privately owned provider of fibre-to-the-premises network solutions.
It provides internet infrastructure for some new developments who choose to install OptiComm rather than NBN and is considered “core-plus” infrastructure by some infrastructure funds.
It listed last year with a $208.2m market value, with shares being sold at $2 each.
The founders, including director David Redfern and Paul Cross, still own about 40 per cent.
Shares in OptiComm closed on Friday — before the revised offer was announced — at $5.96 with its market value at about $620m.
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