QIC and Superloop ‘unable to agree’ on takeover deal as exclusivity period ends

QIC had made an offer of A$1.95 per share, which valued the fibre network operator at approximately A$493 million.

Exclusive takeover talks between QIC and fibre network operator Superloop have come to an end after the two parties were unable to agree terms.

Superloop announced to the Australian Securities Exchange this week that its board had been “unable to agree to a transaction” with QIC and that it had therefore decided to end the period of exclusivity that had been granted to the Queensland-based fund manager.

QIC made an unsolicited, non-binding indicative offer of A$1.90 ($1.31; €1.17) per share on 2 April. On 26 April it upped the offer to A$1.95, which valued the ASX-listed company at around A$493 million. The firm intended to make the investment through its Global Infrastructure Fund and managed accounts.

QIC declined to comment on why the two parties had been unable to reach agreement or whether the end of the exclusivity period precluded the fund manager from making a further bid.

Media reports in Australia have speculated that a rival bidder for Superloop may be poised to enter the fray. Brookfield Asset Management has been touted as a potential buyer owing to its recent interest in digital infrastructure, including a successful takeover this week of Vodafone New Zealand. BAM declined to comment when contacted by Infrastructure Investor.

Superloop owns and operates more than 670km of metropolitan fibre networks in Australia, Singapore and Hong Kong, which connect data centres with commercial properties. It also operates fixed wireless networks in Australia.

According to its latest annual results, Superloop made a net profit of A$7.1 million as of 30 June 2018 and reported EBITDA of A$29.1 million.

The firm said it “remains focused on executing its growth strategy across Australia, Singapore and Hong Kong to realise the significant value of its Asia-Pacific fibre infrastructure assets”.