Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Fibre network operator <a href="https://www.smartkarma.com/entities/opticomm-ltd" target="_blank" data-smartkarma-citation="entities:29041:1" rel="noopener">OptiComm Ltd (OPC AU)</a> was listed on the 22 August 2019 at $2.00/share, and promptly gained 50% on its debut. It continued this upward trajectory before closing at $5.02 last Friday.
Yesterday morning, Adelaide-based outfit <a href="https://www.smartkarma.com/entities/uniti-group-ltd" target="_blank" data-smartkarma-citation="entities:29042:1" rel="noopener">Uniti Group Ltd (UWL AU)</a> tabled a cash/scrip <a href="https://www.asx.com.au/asxpdf/20200615/pdf/44jmw2gm9mk0f4.pdf" target="_blank" rel="noopener">Offer</a> by way of a Scheme, with a total consideration of A$5.20/share, including a $0.10/share fully franked dividend.
This backs out a 13.6x EV/EBITDA and 24.5x PER.  Plus a 160% gain for shareholders since listing. 
Shareholders are afforded five alternatives under the Scheme: an all-cash payment; an all-scrip settlement (3.4228 Uniti shares for every OptiComm share), or three different cash/scrip combos.
Cash and scrip are capped at A$407mn and 84mn Uniti shares, respectively, implying a 77%/23% cash/scrip split. 
Uniti will <a href="https://www.asx.com.au/asxpdf/20200615/pdf/44jmw4cmtnp435.pdf" target="_blank" rel="noopener">fund</a> the Scheme via a A$270mn entitlement Offer and a three-year A$150mn debt facility. The institutional component, comprising ~A$152mn, has successfully <a href="https://themarketherald.com.au/uniti-group-asxuwl-successfully-completes-152m-institutional-entitlement-offer-2020-06-16/" target="_blank" rel="noopener">completed</a>.
This aggressive tilt for OptiComm is the latest in a string of acquisitions from Uniti, which itself was listed in February last year.  I would take the Offer with a more cash-heavy component.
More below the fold.

Fibre network operator OptiComm Ltd (OPC AU) was listed on the 22 August 2019 at $2.00/share, and promptly gained 50% on its debut. It continued this upward trajectory before closing at $5.02 last Friday.
Yesterday morning, Adelaide-based outfit Uniti Group Ltd (UWL AU) tabled a cash/scrip Offer by way of a Scheme, with a total consideration of A$5.20/share, including a $0.10/share fully franked dividend.
This backs out a 13.6x EV/EBITDA and 24.5x PER.  Plus a 160% gain for shareholders since listing. 
Shareholders are afforded five alternatives under the Scheme: an all-cash payment; an all-scrip settlement (3.4228 Uniti shares for every OptiComm share), or three different cash/scrip combos.
Cash and scrip are capped at A$407mn and 84mn Uniti shares, respectively, implying a 77%/23% cash/scrip split. 
Uniti will fund the Scheme via a A$270mn entitlement Offer and a three-year A$150mn debt facility. The institutional component, comprising ~A$152mn, has successfully completed.
This aggressive tilt for OptiComm is the latest in a string of acquisitions from Uniti, which itself was listed in February last year.  I would take the Offer with a more cash-heavy component.
More below the fold.

Australia

Uniti Group Limited provides broadband solutions. The Company offers internet access and other related services. Uniti Group serves customers in Australia.

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Uniti Group Ltd (UWL AU)

Uniti/OptiComm: High-Fibre Diet

Fibre network operator OptiComm Ltd (OPC AU) was listed on the 22 August 2019 at $2.00/share, and promptly gained 50% on its debut. It continued...

David Blennerhassett

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