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Aussie Broadband has put forward a new offer for the acquisition of Symbio, unshackling it from previously specified conditions.
The revised offer is no longer conditional on diligence and financing and came through after 11 pm on 28 October and comes to a value range of an estimated $267 million to $271 million.
Previously, Aussie Broadband's offer was subject to a number of conditions including due diligence, entering into a Scheme of Implementation Deed and unanimous recommendation from the Symbio board. As such, at the time, Symbio's board said it confirmed its intention to recommend the proposal.
However, now, Symbio said in a statement to the Australian Securities Exchange that its board is considering the offer, with discussions ongoing. Additionally, the exclusivity deal with Aussie Broadband is due to expire at the end of 31 October and the provider said it does not intend to extend the exclusivity period.
"There is no certainty at this stage that any agreement will be reached or that a transaction will eventuate," Symbio stated.
Specifically, the deal is priced at $2.21 to $2.261 in cash and 0.192 Aussie Broadband shares for each Symbio share.
Based on Aussie Broadband’s last closing price on 27 October of $3.88 per share, this implies a value range of $2.95 to $3.002 per Symbio share. With 86,010,170 shares on offer, this would result in a total of roughly $254 million to $258 million.
Additionally, when considering the one-month volume-weighted average price of Aussie Broadband shares, this then implies an offer value range of $2.99 to $3.04 per share, or approximately $257 million to $261 million
The range comes as shareholders have the opportunity to take the default consideration of 75 per cent cash and 25 per cent scrip or maximising either their cash or Aussie Broadband scrip, subject to scale back as appropriate.
Furthermore, as per the offer, Symbio would be allowed to pay a fully franked dividend prior to the scheme implementation of up to $0.35 per ordinary share, implying a release of franking credits of up to $0.15 per share, referred to as the special dividend, with any such dividend to reduce the cash component of the offer.
When aggregated with the value of franking credits of up to $0.15 per share through the special dividend, this brings the implied value range up to $3.10 to $3.15 per Symbio share, or about $267 million to $271 million.
In August, Superloop made an offer to the tune of $2.85 per share, valuing the deal at about $243 million. Then, in early October, Aussie Broadband penned its initial offer for $3.15 per Symbio share.
