Australian multinational financial services company, Macquarie Group’s infrastructure unit has offered about $2.6 billion (A$3.4 billion) to Vocus 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.
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.
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