Aussie Broadband's proposal to merge with Superloop

Aussie Broadband Limited (ASX: $ABB) has submitted a non-binding indicative proposal to merge with Superloop (ASX: $SLC) at a value of $0.95 per share. The proposal would result in ABB owning 100% of the issued share capital in Superloop through a Superloop scheme of arrangement.

Executive commentary on the proposed merger

The proposed merger with Superloop presents a compelling strategic rationale for both companies. It would create a scale player in Australia's broadband access services, providing greater reach, network infrastructure, and enhanced capabilities to compete with the incumbents. The merger is expected to deliver benefits for Superloop shareholders, including an attractive premium for their shares and participation in the future value creation of the combined business. We believe this proposal holds significant potential for both companies and their stakeholders.

Summary of the proposed merger and outlook

Aussie Broadband's non-binding indicative proposal to merge with Superloop at a value of $0.95 per share reflects the company's strategic focus on expanding its market share and enhancing its product offering. The proposed merger aims to create a strong player in Australia's broadband access services, with the potential for improved scale, investment, and synergies over time. While the proposal is subject to certain conditions, it underscores ABB's ambitions for future growth and value creation. The company will continue to keep the market informed of any material developments regarding the proposed merger.