KKR makes unsolicited bid for Australian operator Vocus

News Broadband Australia 7 JUN 2017
KKR makes unsolicited bid for Australian operator Vocus
Private equity firm KKR has made a bid of around AUD 2.2 billion for the Australian operator Vocus. The non-binding, preliminary offer values the company at AUD 3.50 per share, well ahead of its last closing share price of AUD 2.86. Vocus said its board would set up an independent committee to consider the offer, headed by its chairman and including other non-executive board members. 

The offer still depends on due diligence and a definitive agreement. Other conditions set by KKR include no dividends paid by Vocus until the deal is completed, net debt should stay under AUD 1.1 billion as of end-June, EBITDA for the fiscal year to June is in line with Vocus' guidance of AUD 365-375 million and Vocus does not divest any assets or significantly reduce its working capital. 

Vocus has grown quickly in recent years, via the takeovers of M2, Amcom and Nextgen Networks. It operates a fibre network and data centres across Australia and New Zealand and offers a range of services to businesses. However, in early May the company cut its guidance for the current fiscal year, citing a number of problems including an accounting review of some contracts. The difficulties with integration and a change in management have sent the company's share price down from a peak of over AUD 9 a year ago. 

Categories:

Fixed

Companies:

Vocus

Countries:

Australia

Tags:

Voice services, Data services, M&A buyouts & divestments

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