Uniti share price lifts to 52-week high on sweetened takeover deal

Shares in Uniti Group Ltd (ASX: UWL) are trading up around 3% on Thursday morning on the back of a company announcement.

At the time of writing, the Uniti share price has poked its nose above $4.95 and hasn’t budged since trade commenced on Thursday.

Uniti enters deed with consortium

The company advised it has entered into a scheme implementation deed with MBC BidCo Pty Ltd. Under the terms, MBC BidCo will acquire all of Uniti’s equity on a cash consideration of $5 per share.

MBC BidCO is an entity wholly owned by a consortium comprising The Morrison & Co Infrastructure Partnership, Commonwealth Superannuation Corporation and Brookfield Australia.

Uniti accepted the offer back in March after a short-lived bid off between Macquarie and the consortium, resulting in a revised offer of $5 per share.

The deal values Uniti at approximately $3.62 billion which values the company at an enterprise value (EV) of around $3.73 billion, it says. Although, the cash offer backs out any dividends or distributions declared or paid after today.

“[The deal represents] [a]n implied acquisition EV/EBITDA multiple of approximately 27.6x Uniti’s 12 months underlying EBITDA of approximately $135 million to 31 December 2021 and 25.7x Uniti’s FY22F Consensus underlying EBITDA of $145 million,” the company added.

Uniti’s board has thrown its full weight behind the transaction and urges shareholders to do the same in voting.

Speaking on the announcement, Uniti Managing Director & CEO, Michael Simmons said:

The value placed on Uniti by the Morrison/Brookfield Consortium is a testament to the strength of the Uniti business we have built over the last 3 years since our listing on the ASX in February 2019. We
have built a high quality business with long-term annuity earnings, generated from best-in-class fibre access networks and telecommunications technologies. We are immensely proud of the achievements of the Uniti team and believe that under its proposed new ownership, Uniti will continue to build upon its now established place as a successful, growing participant in the market for high speed, high quality, fibre access networks.

The scheme is still subject to a number of conditions not the least shareholder approval, court approval and a go-ahead from the Foreign Investment Review Board (FIRB).

Uniti says that it also hopes to pay a fully franked special dividend on or before the Scheme implementation date.

In the last 12 months, the Uniti share price has spiked 91% and is up 11% this year to date. In the past month however, it has soared more than 58% and is now sitting at 52-week highs.

The post Uniti share price lifts to 52-week high on sweetened takeover deal appeared first on The Motley Fool Australia.

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Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Uniti Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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