Australia's Superloop has agreed to sell its Hong Kong operations and select assets in Singapore to Columbia Capital and DigitalBridge for AUD 140 million. Superloop reports that the sale price represents a 30 percent premium to the AUD 108 million carrying value of the assets today.
In connection with the sale, Superloop will maintain operations in Singapore and Hong Kong and purchase a 15-year Indefeasible Right of Use (IRU) on the existing or future expanded Singapore and Hong Kong networks. Superloop reports that this sale will allow it to continue to participate in these markets, and provide connectivity services to Superloop’s Indigo submarine cable customers in the region.
Under these terms, Columbia Capital and DigitalBridge will also become strategic partners to Superloop and will work with Superloop to drive incremental traffic on Indigo. Superloop will continue to operate and support the Singapore network under various services agreements for Columbia Capital and DigitalBridge. Superloop will receive a management fee of SGD 1.5 million per annum, plus any incremental capital expenditure required, to deliver these services.
On completion, a number of Superloop’s Singapore customers and contracts (excluding Indigo customers and contracts) will be novated to the new entity established by Columbia Capital and DigitalBridge.
Subject to customary closing conditions being met, the completion of the transaction is expected in early 2022.
