Swoop has entered into a binding Share Sale Agreement (SSA) for the disposal of 100% of the shares of Luminet Fibre Pty Ltd (the owner of the Melbourne Fibre Project) with Xenith IG Australia Holdings Pty Ltd, a wholly-owned subsidiary of Xenith Infrastructure Group (Xenith).
Xenith is a Singapore-headquartered digital infrastructure developer with experience in the ownership, development and operation of fibre network assets across the Asia Pacific region, including Australia.
The asset comprises a 282km fibre network currently under construction in Melbourne.
Under the SSA, Swoop will receive cash proceeds of $11 million, payable on completion of the transaction, as well as reimbursement of certain recoverable project costs.
Net proceeds will be substantially applied by Swoop to reduce debt.
The transaction represents an "attractive opportunity" for Swoop, according to a statement released by the board, to realise value from a non-core asset while simplifying the company's operating profile and enabling management to prioritise Swoop’s growing consumer NBN and MVNO telecommunications business.
Following completion of the transaction, Swoop will have no further responsibility for the development, construction or operation of the Melbourne Fibre Project. The transaction will also remove the Company's remaining capital expenditure commitments associated with the Melbourne Fibre Project.
Completion of the transaction is subject to the satisfaction of a limited number of conditions precedent, including approval from FIRB pursuant to the Foreign Acquisitions and Takeovers Act 1975 (Cth).
Completion is expected to occur in Q1 of FY2027 and Swoop will provide an update to the market upon completion of the transaction.
Last week, Moose Mobile, a subsidiary of ASX-listed Swoop, entered into a MVNO wholesale agreement with TPG.
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