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Highlights
- Uniti has received a revised indicative proposal from a consortium comprising HRL Morrison & Co and Brookfield Infrastructure Group.
- On the back of the news, Uniti shares were up as much as 4% at AU$4.92 in early trading.
- Earlier, the company had received a proposal from Macquarie Infrastructure.
Australian telecom company Uniti Group Limited (ASX:UWL) announced today (29 March 2022) that it has received a revised indicative proposal from a consortium comprising HRL Morrison & Co and Brookfield Infrastructure Group to acquire Uniti.
What is a merger & acquisition (M&A)? Why do companies do M&A?
According to an ASX filing, the deal would be for a cash consideration of AU$5.00 per share, via a scheme of arrangement. The offer price is the same as the Macquarie Infrastructure and Real Assets Holdings Pty Limited, which the company had received last week (24 March).
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On the back of the news, Uniti shares were up as much as 4% at AU$4.92 in early trading, hitting a new high after rising more than 50% since initiating exclusive discussions with Morrison.
Also Read: Uniti Group (ASX:UWL) gets AU$3.4B takeover offer from Macquarie (ASX:MQG)
More on the proposal from Morrison/Brookfield Consortium
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- Uniti is valued at around AU$3.4 billion in the amended Morrison/Brookfield purchase bid.
- The Morrison/Brookfield Consortium, according to Uniti, has made good progress with its due diligence programme and lender engagement, with no concerns discovered as of now.
- Brookfield Infrastructure Group and HRL Morrison & Co are members of the consortium, which filed an initial proposal earlier this month before Brookfield entered the takeover attempt as a 50:50 partner.
- The revised Morrison/Brookfield Consortium indicative proposal has largely the same terms and circumstances as the prior proposal Uniti received from Morrison & Co.
- The Connect Consortium has also made a takeover offer to Uniti.
- Uniti is expected to not communicate with the Connect Consortium anymore or enable it to conduct due diligence investigations as part of the new takeover offer.
Also Read: ASX 200 ends 0.5% higher amid tech boost; Uniti (ASX:UWL) soars over 10%
About Uniti
Adelaide-based Uniti Group which was founded in 2012 operates in three segments - consumer & business, wholesale & infrastructure, and communications.
In the half-yearly results for its FY22, UWL reported 140% EBITDA growth in its FY22 half-year results, owing to organic business development. UWL also generated a lot of free cash flow, which accounted for around 56% of EBITDA. About 90% of the communication services company’s earnings were driven from recurring super-fast FTTP networks, with its contracted FTTP order book expanding well.
Uniti's stock performance
Uniti's shares have risen more than 11% in the last week. The shares have gained almost 6% in their YTD price. In its 52-weeks share price, Uniti's shares have skyrocketed 97% and currently trading at AU$4.70 a piece at the time of writing this article.
