One of Brisbane’s Top Companies Over The Wire (ASX: OTW) has today received a $344 million takeover offer from listed telco Aussie Broadband (ASX: ABB).
The offer, which has been unanimously recommended by OTW’s directors, will see shareholders receive $5.75 per share held in cash, or 1.15 ABB shares, or a combination of cash and ABB shares.
At $5.75 per OTW share, the bid represents a 20 per cent to 30.8 per cent premium to OTW’s 30 day volume-weighted average price (VWAP) to 21 October 2021, and gives the target an implied enterprise value of $390.4 million.
“We admire the Aussie Broadband business’ strong ambitions and proven execution, and we are excited about the compelling customer propositions that OTW and ABB can bring to market together,” OTW chair Stephe Wilks said.
Managing director Michael Omeros, who co-founded the telecommunications business that services business customers across Australia with voice, data, hosting and security services in 2005, said the deal marks a new era for OTW.
“This is an exciting next step in the OTW journey, and I am very proud of what the OTW team has built over the years which is reflected in this compelling proposal for the company,” said Omeros, who will join the ABB board upon completion of the transaction.
ABB co-founder and managing director Phillip Britt also welcomed the deal.
“We believe Over the Wire is a great match to complement our current range of services. It’s a high quality business in a large and growing segment of the Australian telecommunications market,” Britt said.
“After several weeks of getting to know the company’s senior team, we very much look forward to welcoming OTW to the Aussie Broadband family.”
According to Aussie Broadband, the acquisition will have benefits including annual cost synergies of between $8 to $12 million within three years, with the two to generate FY21 revenue of $463.1 million and EBITDA of $51 to $55 million.
The offer remains conditional on court approval and an independent expert concluding the shame is in the best interests of OTW shareholders.
Shares in ABB are down 2.94 per cent to $5.29 per share at 10.03am AEDT.
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