AUS
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Highlights
- Bigblu Broadband agrees to sell its Australian subsidiary to SKM Telecommunication Services for AUD$50.2 million (approximately £25.67 million).
- The deal includes a mix of cash and shares, with a substantial payment set for the first anniversary.
- The sale is expected to provide an excellent return on Bigblu’s original investment in SkyMesh.
Bigblu Broadband plc (LSE:BBB.L), a leading provider of alternative super-fast and ultra-fast broadband services, has announced that it has conditionally agreed to sell its Australian subsidiary to SKM Telecommunication Services Pty Ltd, a newly formed bidco established by Salter Brothers Asset Management for the purpose of the acquisition. The deal, which values the Australian subsidiary at up to AUD$50.2 million (approximately £25.67 million), marks a significant step in Bigblu’s ongoing strategic realignment.
The total consideration for the sale will be structured as follows:
- 59.8% of the total price, approximately AUD$30 million (around £15.35 million), will be paid in cash on the Completion Date, subject to a cap of AUD$30 million (the "Completion Payment").
- Additionally, Bigblu will receive Consideration Shares, which will represent 26.5% of the Headline Price, to be issued on the Completion Date.
- On the first anniversary of the Completion Date, further cash amounts will be paid, including AUD$6.88 million (approximately £3.52 million), a cash payment reflecting the net profit of Skymesh for November 2024, and adjustments based on certain customer debts and the costs associated with their collection.
The agreed Headline Price represents a significant return on Bigblu Broadband’s initial investment in SkyMesh, estimated at up to 2.2 times the aggregate consideration paid for the acquisition and subsequent purchases of SkyMesh-related assets.
Following the sale, the Completion Payment, after transaction fees of £14.35 million, will be used to reduce the company’s current revolving credit facility (RCF) with Santander Bank, as needed for the ongoing operations of Bigblu's other business units.
The Consideration Shares, which will initially represent 33.7% of the pre-dilution equity in the ongoing business, demonstrate a strategic focus on maintaining value and involvement in the company’s future growth.
