Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


ASX-listed Vocus halted amid acquisition talk

Vocus stock halted from trading on ASX after report it will buy FX Networks

By Jonathan Underhill

June 30 (BusinessDesk) - Shares of Vocus Communications were halted from trading on the ASX after National Business Review reported it is close to buying fibre optic cable network operator FX Networks for more than $100 million.

"The trading halt is requested in response to media speculation this morning and pending an announcement by the company of a possible acquisition," Vocus said in a statement.

Vocus shares have soared 128 percent in the past 12 months, and last traded at A$4.76 on the ASX, valuing the company at about A$442 million. The S&P/ASX 200 Index climbed 15 percent in the same period.

The company may have to raise capital to fund an acquisition of that size, as cash stood at A$7.7 million as at Dec. 31 and it raised A$48.7 million in March via a placement of shares. Vocus describes itself as the leading independent provider of wholesale and telecommunications services in Australia and New Zealand, providing internet, fibre and ethernet, and data centre services.

FX Networks owns and operates a national inter-city fibre optic network in New Zealand, has annual revenue of more than $50 million and more than 3,000 clients, according to its website. The company has laid 4,200 kilometres of fibre and has 29 Tb of national capacity, it says.

At the time of the placement in March, Vocus said it was considering "potential acquisitions that would expand or complement its existing product set and network reach."

FX Network shares are allocated between 108 shareholdings, the largest of which is Isle of Man-based Peregrine, which NBR says is owned by FX chairman Colin Hill. A further 18 percent is owned by Penrith Holdings, which in turn is owned by family trusts associated with Maureen and Paul Benjamin and Taupo-based investor Gray Thompson.

Hill confirmed the company has been in sale talks, according to NBR.

Earlier this month, Vocus announced the acquisition of a 10 percent interest in the Sea-Me-We 3 undersea cable linking Perth, Australia, with Singapore from Telecom New Zealand for US$2.3 million.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

R18: The Warehouse Group Praised For Removing Games

The decision by New Zealand’s largest retailer The Warehouse Group (TW Group), to withdraw stocks of the latest version of Grand Theft Auto V (GTA V) and other R18 games, has been praised by advocacy group Stop Demand Foundation. More>>

ALSO:

Air NZ Wine Awards: Victory For Villa Maria As Pinot Noir Thrills

It was a night to remember as Villa Maria Estate picked up one of the highest accolades of the evening, the O-I New Zealand Reserve Wine of the Show Trophy, at the 28th Air New Zealand Wine Awards. The Villa Maria Single Vineyard Southern Clays Marlborough ... More>>

ALSO:

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Commerce: Supermarket Inquiry Finds No Breaches By Countdown

The Commerce Commission inquiry into anti-competitive behaviour by Countdown supermarkets, alleged by former Labour Party MP Shane Jones, has found nothing to warrant prosecution, although it warns supermarkets to take care in the way they communicate... More>>

ALSO:

Crown Accounts: English Flags ‘Challenge’ To Budget Surplus

Finance Minister Bill English is warning next month’s half yearly fiscal and economic update from the Treasury may not forecast a budget surplus, saying that returning the government’s accounts to surplus in 2015 will be “a challenge”, given the decline in commodity prices and weak global inflation. More>>

ALSO:

March 2015: Netflix To Launch In Australia And New Zealand

World’s Leading Internet Television Network to Offer Original Series, Movies, Documentaries, Stand-Up Comedy Specials and TV Shows for Low Monthly Price More>>

ALSO:

Price Of Cheese (Is Up): Dairy Product Prices Fall To Five-Year Low

Dairy product prices fell in the latest GlobalDairyTrade auction to the lowest level in more than five years, led by declines in rennet casein and skim milk powder. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news