Telco infrastructure group Uniti (ASX: UWL) has attracted a $3 billion takeover offer after its shares soared 17% to $3.685 before a trading pause brought the surge to a halt for several hours.
The rapid rise in the share price and the confirmation of the rumoured bid suggests an early leak somewhere that resulted in the ‘inspired’ trading.
The company revealed a ‘non-binding offer in an announcement to the ASX at 3.22pm in which it confirmed that NZ headquartered asset manager, HRL Morrison & CO had entered into “exclusive” discussions about a “non-binding, conditional Indicative Proposal is for an indicative price of $4.50 cash per share, fully diluted, which is within the value range mentioned in the media speculation.”
Uniti said the period of exclusivity with Morrison expires on April 22.
The mooted $4.50 a share, while much higher than the current share price, is less than the 52-week high for the stock of $4.69, which could see some shareholders reluctant to accept any deal below that level.
Uniti sells retail and wholesale internet connections through fixed fibre broadband and fixed wireless.
Uniti was part of a takeover battle for Opticomm two years ago, paying $532 million for the company and beating Aware Super, which then went on to purchase Vocus for $3.5 billion in a joint venture with Macquarie Bank’s infrastructure arm.
In late 2020, Uniti also purchased Telstra’s backhaul fibre network, known as Telstra Velocity for $85 million.
The Uniti Board said “it is uncertain that the Indicative Proposal will result in an offer to Uniti shareholders.”
When trading resumed after the pause was lifted the shares rose further to close at $4.01 (up more than 27% on the day), well under the indicated $4.50 offer price which suggests investors don’t think this one will fly at this price.
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Meanwhile Healius (ASX: HLS) – formerly Primary Healthcare – yesterday launched a $100 million share buy-back.
The company told investors on Tuesday that the buyback, will take place over the next 12 months and the company will have regard for “prevailing share price, market conditions and any incremental capital requirements”.
The company last unveiled a share buy-back at the end of 2020 for up to $200 million, along with plans for $80 million worth of cost savings by 2023.
Healius, which operates day hospitals and pathology testing, reported a 271% jump in profits for the six months to December to $233.2 million for the half.
However, the share price has been under pressure, with the stock dropping 16.6% year to date which probably helps explain the buyback.
The news saw 3.2% of that 16% fall won back with the shares closing at $4.45.
