SLC - Superloop Limited

[Dona Ferentes]

taking bat n ball, and going home.
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SLC advises that its Best and Final Offer to acquire all of Symbio Holdings Limited’s shares via a scheme of arrangement lapsed on 29 September 2023.

ENDS

Authorised and approved for release by ...

 

[Dona Ferentes]

SLC advises that its Best and Final Offer to acquire all of Symbio Holdings Limited’s shares via a scheme of arrangement lapsed on 29 September 2023.

.... although .... not so fast ...
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reports are emerging that Superloop may have another go ...

Takeover rules governing schemes of arrangement allow it to return with another offer and Superloop is expected to update investors on whether it will abandon its pursuit of Symbio or consider a further offer.

Investors believe Aussie Broadband’s bid could be a significant concern to Superloop, given Symbio is one of its largest customers and contributes more than $5 million in annual revenue.

Superloop chief executive Paul Tyler, who has spent the past few years cleaning up the balance sheet through a strategic acquisition of Exotel, told investors on a call last quarter: “I could take $10 million of costs out of Symbio with a blindfold."

 

[Dona Ferentes]

Superloop Limited (ASX:SLC) has signed an exclusive contract with a major retail service provider customer as part of the official launch of a new Superloop wholesale product, 'Hosted Backhaul', a new 'Infrastructure on Demand' solution optimised for nbn's new WBA5.

The five-year, exclusive contract is expected to generate more than $30 million in revenue over its term and will see the RSP switch its backhaul arrangements to Superloop.

 

[Dona Ferentes]

still not making it. ( 75c )

cash position is higher
intangibles are off the chart.
gaining customers in wholesale, business and retail, though margins are weakest for biggest = retail

 

[Dona Ferentes]

still not making it. ( 75c )

overall seen as a positive, got as high as 86c mid afternoon

 

[Dona Ferentes]

overall seen as a positive, got as high as 86c mid afternoon

.... it's about TIME.

but should now be about CASH
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Aussie Broadband Limited (ASX:ABB) announces it has submitted a non-binding indicative proposal which would result in ABB owning 100% of the issued share capital in Superloop (ASX:SLC), by way of a Superloop scheme of arrangement.

Under the Indicative Proposal, Superloop shareholders would receive 0.21 ABB shares for each Superloop share held. Based on the last closing price of ABB shares ($4.53 on 23 February 2024) this implies a total value to Superloop shareholders of $0.95 per share.

ABB believes that the Indicative Proposal will deliver a number of benefits for Superloop
shareholders, including:
• Realising an attractive premium for their shares, representing a 33.2% premium to the 3 month VWAP at 23 February 2024 of $0.71 for an all-scrip merger transaction;
• Through its ongoing shareholding in ABB, participation in the future value creation of the combined business including through synergies over time; and
• Benefitting from improved liquidity in their shares.

ABB believes there is compelling strategic rationale for the merger with Superloop, which will deliver:
• A scale player in Australia providing broadband access services exceeding 1 million subscribers, with greater reach and network infrastructure, along with brands in Aussie Broadband, Superloop and Exetel;
• A growing business segment with an enhanced product offering and end-to-end capabilities to compete with the incumbents;
• A strong wholesale offering which is well positioned for growth through improved scale and investment; and
• A synergy pool through removal of network cost duplication and other customary cost areas.

 

[Dona Ferentes]

ABB has also acquired a 19.9% relevant interest in Superloop. ABB acquired the Superloop shares at $0.95 in cash per share....

I think this t/o is a logical development ... but telco/ ICT land is a place of constant change. Have we reached peak broadband, with mobile supplanting the base, for data just as it has for fixed line phone? We'll still need the fibre networks for interconnectivity.

There are 3 elements to these models, wholesale, business and domestic. Business delivers the margins and domestic the numbers.

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I was just reading about TLS and its need to attack costs , as the juniors are nipping at their heels ...

[Telstra's] overhaul of the enterprise business comes as rival Optus warns of “churn and price erosion” in its fixed enterprise operations and the big telcos encounter more competition from Aussie Broadband and Superloop, which make most of their money selling home internet services....

The so-called “challenger” telcos are still minnows compared with Telstra and Optus but are pushing into the business and enterprise market, forcing the telecoms giants to be more competitive.

 

[Dona Ferentes]

ABB has also acquired a 19.9% relevant interest in Superloop. ABB acquired the SLC shares at $0.95 in cash per share

and SLC has topped out at around $1.00 for the day, above the notional value. With ABB holding 20 per cent, it's unlikely another bid will appear.

ABB released a positive 1H on Friday, and had a good rise ... Today it has gone higher again, and lifting SLC in the all share offer. closed at $4.62

Nearly 110 million SLC shares traded today, probably 25 per cent of the free float. closed at $1.00

trades in the last 7 days.:

 

[Dona Ferentes]

Superloop investors have backed the broadband internet group’s decision to reject a $466 million takeover approach from rival upstart telco Aussie Broadband, but agree the combination of the two companies makes strategic sense.

Superloop said that the board and its advisers had considered an all-stock proposal worth 95¢ a share and believed it was “opportunistic” and undervalued the listed target.

“The board does not intend to engage with Aussie Broadband on the indicative proposal,” Superloop said in reply. “The 2024 financial year is the first of our three-year ‘double down’ strategy intended to double the revenue in the business whilst expanding margins, and the performance in this first half demonstrates its execution is tracking strongly against this plan.”

 

[Dona Ferentes]

.. now $1.05. likely to open higher, so is ABB scrip offer still a goer?

snared Origin Energy as customer for their broadband

Upgrade of FY24 Guidance and FY25 Outlook6
The continued strength of Superloop’s trading performance provides the Company with confidence to upgrade its FY24 Underlying7 EBITDA from the previous $49-53 million range to a revised $51–53 million range.

Importantly, the Company’s cost structure and efficient operating model provides a competitive advantage and is ensuring strong trading momentum is translating to continued earnings growth and cash generation.

The significant incremental contribution from Origin in addition to the annualised benefit of record Wholesale customers wins ($9 million annualised new sales) in the first half coupled with continued momentum in subscriber growth across our Consumer broadband offering, provides the Company with confidence in strong underlying growth in earnings through FY25.

The Company currently expects Underlying EBITDA year on year growth of 60% - 70% in FY25 (inclusive of the contribution from the Origin contract announced today). Given the significance of new customer wins, Superloop anticipates that it will spend a one off incremental $5m of growth Capex, spread across FY24 and FY25 on top of its $20-22m capex guidance range.

 

[Dona Ferentes]

and that's one way to see off a proposal

ABB as low as 3.24.

 

[Dona Ferentes]

and that's one way to see off a proposal

ABB as low as 3.24.

View attachment 172719

SLC as high as $1.37 and holding the difference from ABB.... it's involving lawyers now.

 

[Dona Ferentes]

Aussie Broadband Limited (ASX:ABB, ABB) refers to its acquisition of a 19.9% relevant interest in Superloop which was announced on 26 February 2024 and the subsequent notice from Superloop directing ABB to dispose of its legal and beneficial ownership in a number of shares in Superloop, which was announced on 18 March 2024.

On 1 April 2024, ABB entered into an agreement to sell 37,621,056 fully paid ordinary shares in Superloop at a sale price of $1.31 per share. Following the sale, ABB has a 11.99% shareholding in Superloop.

... SLC was $1.35 last week

 

[galumay]

Still think SLC should be de-listed on the ASX, ridiculous that foreign rules can apply to an ASX listed company in this way. If they want to operate under Singapore Laws they should be listed there.

 

[Dona Ferentes]

SLC as high as $1.37 and holding the difference from ABB....

wishful thinking by ABB for getting SLC on board.

 

[Dona Ferentes]

now $1.60 and likely to go higher.
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FY24 results for the full year ended 30 June 2024.​

Highlights
• Total revenue of $420.5 million, up 30.0% compared to $323.5 million in the Prior Corresponding Period
• Strong organic revenue growth of 23.0% with gains reported across all three market segments
• Consumer segment revenue growth of 47.1% up $84.7 million to $264.6 million driven by a record 32.9% organic growth in Consumer customers
• Superloop now services more than 455,000 customers with over 87,000 net new customers added during the year
• Gross margin of $145.1 million up 24.2% compared to PCP, with contributions to margins from all segments
• Underlying EBITDA of $54.3 million, an increase of 45.2% compared to $37.4 million in the PCP
• NPATA of $23.5 million compared to ($3.7) million in the PCP, an increase of 738.8%
• Strong operating leverage with operating expenses continuing to grow at a lower rate than revenue
• Strong cash generation with free cash flow of $29.2 million up 26.0% on PCP
• Net loss for the year of $14.7m, an improvement of 65.8% and growth in free cash flow sets course to Net Profit After Tax positive by FY26
• Landmark deals with Origin Energy and AGL will make a material contribution to earnings from FY25.

 

[Dona Ferentes]

Aussie Broadband Limited (ASX:ABB) announces it has submitted a non-binding indicative proposal which would result in ABB owning 100% of the issued share capital in Superloop (ASX:SLC), by way of a Superloop scheme of arrangement.

that was 6 months ago.... ABB languishing $3.02, while SLC up above $1.70 today

 

[Dona Ferentes]

Annual Report out on 15th ...

.... has pushed from $1.70 to $2.00 in last three days

 

[Dona Ferentes]

Annual Report out on 15th ...

CHAIR ADDRESS AT THE 2024 ANNUAL GENERAL MEETING OF SUPERLOOP LIMITED​

FY24 has been an outstanding year for Superloop and I am pleased to report strong growth continues across all segments: Consumer, Business and Wholesale. Following the successful completion of our 3-in-3 turnaround strategy last year where we tripled revenue over three years, FY24 marked the commencement of our Double Down strategy aiming to double the size of the business by the end of FY26. The Company is set to accelerate growth in both revenue and profitability by maintaining cost leadership, gaining a deeper and broader market penetration and portfolio richness. Additionally, growth is expected to be supported via prudent consideration of acquisitions that offer long-term strategic value to the business.

Superloop has already delivered in its first year of the new strategy, with year-on-year growth across key metrics. Revenue increased by 30% to $420m, Underlying EBITDA1grew by 45% to $54m and we achieved record organic growth in new customers, finishing the 2024 financial year with over 455,000 customers. The Company reduced its net loss by 66% compared to the prior period, achieved positive cash flow and is on track to achieve positive NPAT for FY26....

..Since our last AGM, we have entered the S&P ASX/300 Index as a result of increasing investor demand for our Company’s securities, leading to share price appreciation of over 2.5 times during the period, the third highest gain in the All Ordinaries index. Our entry into the S&P/ASX 300 Index is a major milestone and a true reflection of Superloop’s success in delivering value to shareholders, while also highlighting the Company’s future growth potential.

In February 2024, Superloop received an indicative and non-binding proposal from one of our competitors, Aussie Broadband Ltd, to acquire all the shares in Superloop. The Board of Superloop considered the offer and believed that the offer was opportunistic and fundamentally undervalued Superloop.

In FY25, Superloop will continue to focus on driving strong organic growth, increasing its market share in the segments we operate in and maintaining cost leadership, as well as delivering value to our customers and shareholders.

.... has pushed from $1.70 to $2.00 in last three days

and holding...

 

[Dona Ferentes]

$2.04

Resolution of Federal Court Proceedings​

In February 2024, Aussie Broadband Limited (ABB) acquired 19.9% of the issued capital of Superloop Limited. On 15 March 2024, SLC's directors issued a notice directing ABB to reduce its shareholding below 12%, which ABB subsequently did. On 18 March 2024, ABB commenced proceedings against SLC and its directors challenging the validity of that direction.

Having subsequently received further information as to the circumstances in which that direction was given, ABB has withdrawn the allegations it has made against SLC and its directors in the Proceedings (which by agreement will be dismissed) and made an agreed contribution to costs incurred by SLC and its directors.