Superloop Limited (ASX: $SLC) has rejected a conditional, unsolicited, and incomplete indicative proposal from Aussie Broadband Limited (ASX: $ABI or ABB) to acquire all shares in Superloop via a scheme of arrangement. Under the terms of the proposal, Superloop shareholders would receive 0.21 ABB shares for each Superloop share held, implying a value of $0.95 per Superloop share based on the closing price of ABB shares of $4.53 per share as at 23 February 2024. The Board of Superloop believes that the proposal is opportunistic and fundamentally undervalues the company, and as a result, does not intend to engage with ABB on the indicative proposal.
The Board of Superloop, together with its retained financial and legal advisers, has considered the offer and believes that the Indicative Proposal is opportunistic and fundamentally undervalues Superloop. Consequently, the Board does not intend to engage with ABB on the Indicative Proposal. Superloop shareholders do not need to take any action in relation to the Proposal. Superloop is advised by Luminis Partners and Barrenjoeys as financial advisers and Baker McKenzie as legal adviser.
Superloop Limited (ASX: $SLC) has rejected the conditional, unsolicited, and incomplete indicative proposal from Aussie Broadband Limited (ASX: $ABI or ABB) to acquire all shares in Superloop via a scheme of arrangement. The Board believes that the proposal is opportunistic and fundamentally undervalues Superloop. The company's 1H FY24 results demonstrated strong financial performance, achieving record organic revenue and net new customer growth. Superloop is currently executing its three-year 'Double Down' strategy to double the revenue in the business while expanding margins, and the performance in the first half of FY24 demonstrates strong execution against this plan. The rejection of the proposal indicates Superloop's confidence in its strategic direction and future prospects.