- Uniti Group (UWL) has successfully completed the institutional component of an entitlement offer to partly fund the acquisition of OptiComm
- The institutional offer raised around $152 million as part of a $270 million capital raise, which will form part of the approximately $532 million acquisition consideration for the internet provider
- The remaining $118 million will be raised through the retail component of the fully underwritten one for 1.68 entitlement offer
- If the acquisition goes ahead, the combined businesses could have a market capitalisation eligible for ASX 200 listing
- With the successful completion of the institutional entitlement offer, Uniti is one step closer to achieving a big milestone
- Uniti Group closed Tuesday’s session 7.8 per cent higher, with shares trading for $1.66 each
Uniti Group (UWL) has successfully completed the institutional component of an entitlement offer to partly fund the acquisition of OptiComm.
The institutional offer raised around $152 million as part of a $270 million capital raise, which will form part of the approximately $532 million acquisition consideration for the internet provider.
The remaining $118 million will be raised through the retail component of the fully underwritten one for 1.68 accelerated pro-rata non-renounceable entitlement offer announced on June 15.
Institutional offer
The institutional component was well-supported by existing UWL investors.
The shortfall bookbuild was oversubscribed and quickly snapped up by both existing and new investors.
Uniti Chairman Graeme Barclay says the response is indicative of investor enthusiasm for the OptiComm acquisition.
“We are pleased by the strong support that our institutional shareholders have shown for the offer,” Graeme said.
“The acquisition of OptiComm is highly complementary and shareholders are expected to benefit from significant value creation from the growth opportunities the combined business is expected to have access to in the private fibre market.”
Retail offer
The retail entitlement offer will open on Monday June 22, and close on Monday July 6.
Uniti is hoping for a similar response from retail shareholders to raise the $118 million required for the OptiComm acquisition.
The $1.40 share price of the offer represents a 9.1 per cent discount to Uniti’s last closing price before the announcement of $1.54.
The acquisition
According to Uniti, the OptiComm acquisition will aid in the “creation of a growing, large-scale national private fibre challenger with enhanced scale, capability and adjacent market access.”
Essentially, the new agglomeration of the two companies will have a significant market footprint in Australia, and bring forth a stronger, larger, more profitable and diversified business.
The combined businesses could even have a market capitalisation eligible for ASX 200 listing.
All in all, this is a huge move for Uniti, and one that could result in a great leap forward for the company and its shareholders.
With the successful completion of the institutional entitlement offer, Uniti is one step closer to achieving a big milestone.
Uniti Group closed Tuesday’s session 7.8 per cent higher, with shares trading for $1.66 each.