ASX-listed Vocus declares FX Networks acquisition unconditional
By Paul McBeth
Sept. 19 (BusinessDesk) - Vocus Communications, the ASX-listed telecommunications company, has declared its $115.8 million acquisition of privately owned New Zealand fibre optic cable network operator FX Networks unconditional.
The Sydney-based company has received acceptances totalling 99.87 percent of FX Networks' voting stock, with one shareholder holding out, Vocus said in a statement to the ASX. It will look to enforce mop up provisions under the Takeovers Code, having cross the 90 percent threshold, it said.
"Vocus will proceed to settlement of the purchase today," it said.
The Australian company will pay $62 million, with up to 33 percent paid in cash and the balance in new Vocus shares, and assume $53.7 million of debt. Based on results for calendar 2013, the acquisition would have more than doubled Vocus's annual revenue to A$136 million and lifted earnings before interest, tax, depreciation and amortisation to A$36.7 million. FX Networks had a net loss of A$900,000 last year because of interest costs from a related party debt, according to a Vocus presentation on the deal.
FX Networks owns and operates a national inter-city fibre optic network in New Zealand and has 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.
Shares of Vocus gained 1.1 percent to A$5.54 on the ASX, and have climbed 57 percent this year.