- Network operator OptiComm (OPC) has received a surprise takeover bid from a super fund, threatening to pull the rug out from under the Uniti Group (UWL) deal
- Uniti offered to buy OptiComm for $532 million back in June, with the deal valuing OptiComm at $5.10 per share
- This morning, super fund First State Superannual made a move on OptiComm and offered to buy out the company for $5.85 per share
- This values OptiComm at roughly $608 million, which is a healthy premium on the Uniti offer
- OptiComm said the First State offer was unsolicited, but it will engage with company to discuss the potential new deal
- Shares in OptiComm have soared almost 10 per cent to $5.62 each today, while shares in Uniti have slumped almost six per cent to $1.35
Network operator OptiComm (OPC) has received a surprise takeover bid from a super fund, threatening to pull the rug out from under the Uniti Group (UWL) deal.
OptiComm inked a deal with Uniti back in June under which Uniti would take full control of OptiComm for $532 million in a mix of cash and scrip. Under the deal, Uniti would fork out $407 million in cash and 84 million UWL shares worth $125 million.
Uniti’s offer valued OptiComm at $5.10 per share, with OptiComm shareholders to pocket a bonus 10-cent special dividend as part of the agreement.
The deal was all-but-done, with a scheme meeting slated for Thursday this week between Uniti and OptiComm.
However, this morning, First State Superannuation made a move on OptiComm by offering to buy out the company for $5.85 per share. With OptiComm’s 104.07 million shares on issue, this values the company at roughly $608 million — over $75 more than the Uniti offer.
“It’s not what it looks like”
OptiComm assured shareholders and Uniti Group that the First State offer was unsolicited.
“Prior to receipt of the competing proposal, OptiComm had not engaged in any way with the competing bidder and no information had been provided to the competing bidder,” the company said.
Nevertheless, given the neat premium compared to the Uniti deal, OptiComm said it feels it’s appropriate to postpone Thursday’s scheme meeting while it engages with First State to toss up the new offer.
Given the conditionality of the Uniti offer, however, OptiComm said at this point in time, it does not consider the First State bid a superior offer.
Moreover, the First State offer is non-binding. If the super fund ends up making a binding offer, Uniti will have three business days to match the new proposal if OptiComm deems it superior.
In the meantime, OptiComm told shareholders there is no certainty the First State offer will result in a binding proposal, so for now, no action needs to be taken.
Then new offer has OptiComm shareholders celebrating and Uniti shareholders scrambling. At midday AEST, OptiComm shares are 9.87 per cent higher and worth an all-time high $5.62 each. Meanwhile, Uniti shares have sunk 5.92 per cent to $1.35.