Australian telcos Vocus and Amcom have agreed a combination that will create a company with a market capitalisation of about A$1.1bn (US$899m).
The deal would see Vocus gain the 90% of Amcom it does not already own by giving the latter’s shareholders…
Australian telcos Vocus and Amcom have agreed a combination that will create a company with a market capitalisation of about A$1.1bn (US$899m).
The deal would see Vocus gain the 90% of Amcom it does not already own by giving the latter’s shareholders 0.4614 Vocus share for each Amcom share.
This values Amcom’s shares at A$2.45 (US$2) each, which is a premium of about 32% based on their price before a takeover proposal was mooted at the end of October.
Three Amcom directors will also join an expanded eight-person Vocus board, representing the former’s shareholders who will ultimately own about half of the combined company.
“Vocus and Amcom are highly complementary businesses that make this transaction strategically unique,” said Vocus chairman David Spence, who will continue in the role for the merged group.
“This acquisition enhances Vocus’ positioning to create a national telecommunications infrastructure provider to service commercial, channel and wholesale customers.”
The combined group would be the country’s seventh-largest telco based on market capitalisation.
The deal, which requires regulatory approval as well as the nod from Amcom’s shareholders, came after Vocus snapped up an initial 10% of the group earlier this year.
Vocus is being advised by Credit Suisse and Minter Ellison, while Amcom hired Lazard and Clayton Utz.
