Swoop Holdings Makes Takeover Bid for Vonex with Increased Offer

2 min read | October 18, 2024 01:15 PM AEDT | By Team Kalkine Media

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Swoop Holdings Makes Takeover Bid for Vonex with Increased Offer — Image source: shutterstock

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Highlights

Swoop Holdings increases takeover offer for Vonex.

Offer includes one Swoop share for every 4.2 Vonex shares.

The offer presents a significant premium to Vonex's recent share prices.

Swoop Holdings (ASX:SWP) has made a fresh takeover bid for Vonex with an increased off-market offer. The offer is priced at 5 cents per share (cps), significantly higher than Vonex's recent share price. The takeover deal is valued at approximately $18.09 million, based on Thursday’s market close.

Swoop has proposed offering one fully paid Swoop ordinary share for every 4.2 Vonex shares (ASX:VN8), representing a notable premium of 178% compared to Vonex’s closing price of 1.8 cents per share in June 2024. Additionally, it reflects a 22% premium compared to Vonex’s closing price of 4.1 cents per share on October 17, 2024.

Currently, Swoop already holds 19.9% of Vonex shares, a key threshold that legally necessitates a takeover offer. This ownership stake gives Swoop a strategic advantage in pursuing the acquisition and gaining more control over Vonex. The timing of the offer allows Swoop to counter MaxoTel, a privately held company that has also been attempting to acquire Vonex since June 2024.

MaxoTel has been in a competitive position with Swoop for months, and Swoop’s latest move is seen as an attempt to outmaneuver MaxoTel in the takeover race. Swoop raised its initial offer of 4.2 cents per share to the current offer of 5 cents per share, aiming to secure the deal before the upcoming meeting on October 23, 2024. With Swoop’s significant voting power and MaxoTel being restricted from voting on the MaxoTel Scheme, the likelihood of MaxoTel’s acquisition attempt succeeding appears low.

Swoop’s management has indicated that their offer would allow Vonex shareholders to retain exposure to the business through ownership in Swoop (ASX:SWP). This approach would enable Vonex shareholders to benefit from the potential synergies of the combined company, as Swoop plans to cross-sell services across an expanded customer base. Swoop believes this strategy could unlock value and scale advantages, though specific details on how this would be achieved remain unclear.

The ongoing takeover battle highlights the growing consolidation efforts in the telecommunications sector, with Swoop looking to solidify its position and leverage Vonex's assets for future growth.

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