Telco Swoop said it has submitted a non-binding indicative proposal to acquire 100 per cent of Brisbane headquartered Vonex, a fellow telco and internet service provider which is listed on ASX.
In doing so, Swoop will be challenging an existing scheme of arrangement between Vonex and Maxo Telecommunications, as announced on 25 June 2024.
Swoop's offer, presented to the Vonex board chair, proposes a combination of cash and scrip valued at $0.040 per Vonex share.
This bid represents a small premium over the MaxoTel scheme, which offered $0.0375 per share.
The proposed scheme of arrangement would allow Vonex shareholders to elect various combinations of cash and fully paid ordinary shares in Swoop, subject to certain caps.
Its structure aims to provide Vonex shareholders with exposure to a potentially stronger, larger combined entity and the opportunity to benefit from significant synergies.
Swoop anticipates that these synergies could represent over $5 million in EBITDA on an annualised basis.
The company also suggests that Vonex shareholders receiving scrip consideration may be eligible for rollover relief.
James Spenceley, Swoop's chairperson, pointed to Swoop's track record in acquiring and integrating businesses, suggesting that this experience positions the company well to extract material synergies from the acquisition.
Swoop has received an indicative term sheet and support from its existing financier, Westpac, the telco said.
The merged entity would create a larger scale business, potentially offering a more attractive investment opportunity in the capital markets.
Swoop projects that the pro forma revenue for the combined business for FY24 would reach approximately $137 million.
ASX listed Swoop has been on an aquisition spree, buying Speedweb, Countrytell, Voicehub, Luminet, iFibre, Beam Internet and Community Communications.
It also bought national mobile network operator Moose Mobile for $24 million in November 2022.
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