The Opticomm Ltd (ASX: OPC) share price has rocketed up 9.4% today and is trading at $6.52 at the time of writing. This comes after the telecommunications company received an amended takeover offer from superannuation fund, Aware Super.
What was the offer?
Aware Super’s amended offer proposes to take over all Opticomm shares at $6.50 per share, including a 10c per share fully franked special dividend. This is subject to 50.1% shareholder approval and there being no material adverse changes or regulatory events affecting Opticomm.
The latest offer from Aware Super represents an 11.11% premium on a earlier offer from internet service provider Uniti, made on 15 September 2020. Uniti now has 3 business days to submit an amended bid if it chooses to do so. Opticomm will be liable to pay Uniti a break fee of $6.1 million if management recommends an alternative offer to its previous proposal or if an alternative offer is accepted. This suggests that if the updated offer from Aware Super is accepted, a fee of $6.1 million could be owed to Uniti.
Opticomm directors are currently considering the amended offer from Aware Super. At this stage, they still recommend that Opticomm shareholders accept the amended offer from Uniti.
In the meantime, due to the revised offer from Aware Super, Opticomm will seek court approval to postpone its meeting to consider Uniti’s amended offer that was scheduled for tomorrow.
About the Opticomm share price
Opticomm is a telecommunications company that provides fibre connections for broadband services. The company has been listed on the ASX since 2019.
In the 2020 financial year, Opticomm’s revenue was $73.04 million, up 17% compared to the 2019 financial year. Opticomm had net profit after tax (NPAT) of $23.06 million in FY2020, an increase of 14% compared to the prior year.
The Opticomm share price is up 115% since its 52-week low of $3. It has risen 65.81% since the beginning of the year. The Opticomm share price is up 75.41% since this time last year.
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Returns as of 6th October 2020
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Motley Fool contributor Chris Chitty has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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