Introduction

Australian multinational financial services company, Macquarie Group’s infrastructure unit has offered about $2.6 billion (A$3.4 billion) toVocus Group for its complete acquisition. Previously known as Vocus Communications, Vocus Group informed the Australian Securities Exchange (ASX) that it has courted an indicative proposal from Macquarie Infrastructure and Real Assets Holdings, the infrastructure investment arm of Macquarie Group. Shares of Vocus raised by a whopping 19% to A$5.2 after it received the offer. 

The bid made by Macquarie’s infrastructure unit

The bid offer made by Macquarie Griup’s infrastructure unit values the shares of Vocus Group at A$5.5 a share (which is about 26$ more than Vocus’s closing price as on 5th February 2021). Vocus, an Australian data services company, said in its statement that Macquarie has been granted access to Vocus Group’s books. This has been done so that Macquarie can put forward the best possible binding offer forward.

In the past years, Vocus has turned down various potential suitors. In 2019, AGL Energy Ltd. took back its offer worth A$3 billion just a week into its due diligence. EQT Infrastructure, a Swedish group abandoned its offer in the same year. In the year 2017, Affinity Equity Partners and KKR & Co. also made separate bids worth $2.2 billion for the data company.

The group controls over 18,600 miles (30,000 kilometers) of fiber cables in Australia which connects all major cities. It also controls the international network which stretches from Australia and New Zealand to Hong Kong, Singapore and the United States.

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What Vocus said to the ASX

Vocus Group appointed Allens as its legal advisor and Credit Suisse as its financial advisor. Sydney-headquartered Vocus said to the securities exchange that after careful consideration by the board and its advisers, the board came to the conclusion that the offer made by MIRA is in the best interest of shareholders of Vocus. In order to explore the potential for a transaction, MIRA has been granted due diligence access which will enable MIRA to put forward the best possible binding proposal, it said. 

With its steady earning streams, telco networks are attractive potential investment opportunities for long-term focused investors like Macquarie, which raised about $3 billion for a new fund to focus on Asian investments. 

Conclusion

Macquarie Group’s infrastructure unit has offered A$3.4 billion to acquire Vocus Group, a major player in Australia’s data services market. This offer, which values Vocus shares at A$5.5 each, marks a significant development in the Australian telecom sector. Vocus has granted Macquarie access to its books for due diligence, and the company is currently evaluating the offer. If accepted, this acquisition would expand Macquarie’s infrastructure holdings, particularly in the telecom and fiber networks sector, which is highly attractive to long-term investors. For more updates and latest tech news, keep reading iTMunch!

FAQs

1. What is the bid offer made by Macquarie Group?
Macquarie Group’s infrastructure unit has offered A$3.4 billion (A$5.5 per share) to acquire Vocus Group, an Australian data services company.

2. How did Vocus Group respond to the offer?
Vocus Group has granted Macquarie access to its books for due diligence, allowing them to submit a binding offer. The Vocus board believes the proposal is in the best interest of its shareholders.

3. What does Vocus Group do?
Vocus Group controls a vast fiber network across Australia and internationally, linking major cities in Australia, New Zealand, Hong Kong, Singapore, and the United States.

4. What is Macquarie’s interest in acquiring Vocus?
Macquarie is interested in Vocus because of its stable earning streams and valuable telecom networks, which make it a desirable investment for long-term investors.

5. Has Vocus received offers before?
Yes, in the past, Vocus has turned down multiple offers, including from AGL Energy and EQT Infrastructure, citing various reasons.

6. What is the next step in this process?
Vocus Group is currently reviewing the offer and conducting due diligence with Macquarie. If the offer is accepted, Macquarie would acquire Vocus in a deal valued at A$3.4 billion.