Vocus agrees to A$4.6 billion acquisition by Macquarie and Aware Super

It looks like Aussie fibreco Vocus will finally be bought by a couple of investment funds, following its board’s approval of the latest offer.

Yesterday we told you about a bid from Macquarie to buy Vocus that was the best of several it has received over recent years. It turns out that was good enough to convince the Vocus board, which has unanimously decided to recommend approve the offer in the absence of anything better on the horizon.

The bid from Macquarie subsidiary MIRA, in partnership with retirement find Aware Super, values the company at A$3.5 billion and represents a total enterprise value of A$4.6 billion once you factor debt and that sort of thing into it.

“The Vocus board is unanimous in our view that this offer is in the best interests of Vocus shareholders,” said Vocus Chairman Bob Mansfield. “In making this assessment, the board considered a range of alternatives, including the execution of our existing strategy under which the proceeds of an IPO of Vocus New Zealand would reduce debt and be invested in our core business. Feedback from shareholders in recent weeks on the indicative offer of $5.50 originally received from MIRA has been overwhelmingly positive and there is a broad recognition that this is a very fair value for Vocus shareholders.”

“In recent weeks, we have been able to confidently declare that Vocus’ three-year turnaround is complete and that we are moving into a new phase of investment,” said Vocus Group CEO, Kevin Russell. “This transaction clearly validates the company’s strong operational and financial performance, and recognises that we are executing the strategy that we set out in 2018.

“Fibre is the critical infrastructure of the modern economy, and this arrangement endorses our view that Vocus’ secure, Australian-operated fibre network is key to our momentum in market. As we enter this new stage of investment and growth, support from MIRA and Aware Super will provide the strongest possible foundation for the business and the capacity to invest in our key assets and provide exceptional service to our customers.”