Swoop Holdings Announces Strategic Takeover Bid for Vonex Limited
Swoop Holdings Limited (ASX: SWP) has officially announced its intention to launch an off-market takeover offer to acquire all the ordinary shares of Vonex Limited (ASX: VN8) that it does not already own. This strategic move aims to consolidate Swoop’s position within the telecommunications sector, further enhancing its capabilities and market presence.
Details of the Offer
Swoop is proposing to offer 1 fully paid Swoop ordinary share for every 4.2 Vonex shares. Based on Swoop’s 30-day VWAP up to 17 October 2024, the implied offer price is 5 cents per Vonex share. This represents a premium to the current on-market offer made by Maxo Telecommunications Pty Ltd (MaxoTel), and a significant increase from Vonex’s share price earlier this year.
Strategic Fit and Rationale for the Takeover
Swoop believes this acquisition presents a compelling opportunity for Vonex shareholders to benefit from a stronger, larger combined entity. The synergies expected from the merger include leveraging the combined customer base, cross-selling opportunities, and unlocking significant cost efficiencies. Swoop anticipates that the merger will result in over $5 million in annualized EBITDA synergies and a combined pro forma revenue of approximately $137 million for FY24.
By accepting the Swoop offer, Vonex shareholders will retain exposure to the future growth of the merged entity, with the potential for continued value creation through strategic execution and market expansion.
Vonex and MaxoTel Scheme Background
Vonex had previously entered into a scheme implementation deed with MaxoTel in June 2024 for the acquisition of its shares. However, Swoop’s offer provides a superior premium to the MaxoTel offer, which was revised to 4.2 cents per share on 17 October 2024. As Swoop currently holds a 19.9% stake in Vonex, and with MaxoTel unable to vote on the scheme, the MaxoTel proposal is unlikely to gain approval in the upcoming meeting scheduled for 23 October 2024.
Outlook for Swoop and Vonex Shareholders
This takeover proposal highlights Swoop’s strategic vision to scale its operations and drive long-term growth through mergers and acquisitions. Swoop’s strong track record of integrating acquired businesses and its consistent compound annual revenue growth of 42% since its ASX listing in FY21 underscores its ability to deliver value to shareholders.
With its robust fiber and fixed wireless infrastructure, Swoop is poised to continue its expansion as Australia’s leading challenger in the internet and telecommunications industry. The acquisition of Vonex would significantly enhance Swoop’s market position, providing new opportunities for growth and increasing its overall competitiveness.
Swoop recommends that Vonex shareholders refrain from accepting MaxoTel’s current on-market offer until they have reviewed the details of Swoop’s bidder’s statement, which will be provided shortly.
Conclusion
The proposed off-market takeover of Vonex by Swoop represents a strategic opportunity for both companies to enhance their service offerings, achieve operational efficiencies, and drive shareholder value. As the telecommunications landscape continues to evolve, the combined Swoop-Vonex entity is well-positioned to capitalize on emerging opportunities and further strengthen its market position.
