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OPC, OptiComm Limited
nipper
post Posted: Oct 12 2020, 09:48 AM
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In Reply To: nipper's post @ Sep 8 2020, 09:54 PM

OptiComm advises that on Monday, 12 October 2020, it received a proposal from Aware Super to make an offmarket takeover offer for all of the shares in OptiComm for $6.50 per share (including a fully franked special dividend of $0.10 per share



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Sep 8 2020, 09:54 PM
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In Reply To: nipper's post @ Sep 8 2020, 01:03 PM

From the AFR

Chanticleer
QUOTE
The most important deal of the year just might involve two companies youíve never heard of, and a superannuation fund determined to pull off an Australian first.

First State Superís $600 million offer for junior telco Opticomm, which arrived just two days before shareholders were set to vote on a takeover bid from rival Uniti, is the first time a super fund has launched a direct bid for an ASX company.

First State Super, an industry fund with $130 billion of assets under management, is bidding on its own, without the involvement of an investment manager.

Which makes this a big deal. As super funds have grown ever larger, there has been intense speculation about the potential for them to take ASX-listed companies private. ...

First State was silent on the decision to use this strategy and its broader plans for Opticomm on Tuesday.

But Chanticleer understands the investment team, led by chief investment officer Damian Graham and the point man on this deal, head of income and real assets Damien Webb, see this as the continuation of a strategy that has seen them invest directly in a range of infrastructure assets....

To be clear, the First State team is excited about the deal and recognises its significance. But the internal view is that this is simply a good infrastructure business ... just one that happens to be listed.

What makes this deal even more dramatic is First Stateís five minutes to midnight bidding strategy. The non-binding offer was handed to the Opticomm board on Monday and announced on Tuesday morning. Opticomm investors were set to vote on Unitiís scheme of arrangement at a virtual meeting on Thursday.

Suffice to say, the Uniti team are perplexed at an offer thatís come out of nowhere. First State is not an investor in either Opticomm or Uniti.

Sources said First State began looking at Opticomm when Uniti first announced its bid on June 15.

Opticomm is Australiaís largest private provider of fibre optic cable, and has built a business around competing with NBN Co on putting networks in new housing estates and similar developments.

As the network owner, Opticomm gets paid three times; when the network is established, when a property is connected to it, and charging retail internet service providers to use it.

Uniti is run by two former directors of telco junior M2, Vaughan Bowen and Michael Simmons. The company only listed last year, and has since gone on an acquisition spree not unlike that which Bowen used to turn M2 from a $14 million minnow into a $2 billion empire.

Indeed, in a delicious bit of irony, one of its deals in August last year was to buy a fibre network operator called LBNCo from a consortium led by ROC Partners and , you guessed it, First State Super. It is also now a significant player in private fibre networks.

The Uniti offer for Opticomm was a mix of cash and script pitched at $5.10 a share, plus a 10Ę dividend if the deal got up.

While the $5.20-a-share package offered a premium of less than 4 per cent to Opticommís last closing price before the deal was announced on June 15, it eventually won the recommendation of the board.

A big selling point was the chance for Opticomm investors to take Uniti stock and enjoy the benefits of the $10 million in annual synergies that Uniti promised. About 30 per cent of Unitiís investors are also investors in Opticomm.

But the party has been crashed by First State, which is offering $5.85 a share in cash.

Opticomm has delayed the shareholder vote, given First State 10 days for due diligence and a deadline of September 18 to make an offer.

The Uniti camp has been sideswiped by the First State offer, which is non-binding and conditional.

The Uniti team justifiably asks how First State will complete due diligence in just 10 days. And how can it assure members that itís not overpaying, given it cannot extract synergies in the same way Uniti can?

But Unitiís big problem is the pressure the First State bid has put on its share price; Uniti shares plunged 10.4 per cent on Tuesday. Given its bid involves script, a falling share price makes it even tougher to match the First State bid.

Uniti Group's Vaughan Bowen has helped the company's value rocket through a string of acquisitions. Still, Uniti was quick to say on Tuesday it can do so without raising capital.

There are even suggestions that First State may turn its sights on Uniti if it successfully buys Opticomm. That might be wishful thinking from interested parties, but it does go to the fascinating question of what First State would do with Opticomm.

What is clear is that First State does not see this as a chance to make a quick private equity style return, but rather a long term bet on a private infrastructure provider.

This fight has a long way to go. But should First State win, it will be an important moment for the market that underscores both the growing power of super funds and their agnostic approach to hunting returns ... private or public does not matter, a good investment is a good investment.

But boards and management teams will have a different view of the prospect that super funds can be stock pickers, takeover predators and rival bidders all at once.


(Bought SLC)



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Sep 8 2020, 01:03 PM
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In Reply To: nipper's post @ Jun 15 2020, 11:00 AM

second player, in with a higher bid, cash too
QUOTE
OptiComm has ... received a non binding and conditional competing proposal to acquire 100% of the shares in OptiComm pursuant to a scheme of arrangement from FSS Trustee Corporation as trustee for the First State Superannuation Scheme. The Competing Proposal includes due diligence and final investment committee approval conditions. The Competing Proposal also includes a condition that the OptiComm Board allow the Competing Bidder to conduct due diligence on OptiComm for the period ending on next Friday, the 18th of September 2020.
The Competing Proposal was unsolicited and prior to receipt of the Competing Proposal, OptiComm had not engaged in any way with the Competing Bidder and no information had been provided to the Competing Bidder. Under the Competing Proposal, OptiComm shareholders would receive 100% cash consideration of A$5.85 per OptiComm share held (less any dividends or distributions OptiComm shareholders may become entitled to after the date of the offer).
- pushed up to $5.70 but settling around 5.58 to 5.60 after the exciement wore off. Will UWL go higher? This offer is from a Super Fund manager, and likely it is the only bid they will make. (treating it as an infrastructure play?!)



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Jun 15 2020, 11:00 AM
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In Reply To: nipper's post @ Jun 15 2020, 10:36 AM

ACQUISITION OF OPTICOMM by Uniti UWL by a RECOMMENDED SCHEME OF ARRANGEMENT
QUOTE
CREATION OF A GROWING, LARGE SCALE NATIONAL PRIVATE FIBRE CHALLENGER, with requisite scale, capability and adjacent market opportunities

Strengthened RECURRING FINANCIAL PROFILE with HIGH LEVEL VISIBILITY INTO FUTURE ORGANIC GROWTH with approximately 190,000 combined contracted lots

Immediately EPS accretive pre-synergies and 23% EPS ACCRETIVE including $10 MILLION of estimated RUN-RATE SYNERGIES.

Unitiís acquisition consideration of $532 million funded via a $270 MILLION ENTITLEMENT OFFER, $150 million new debt facilities and 84.0 million Uniti Shares with an implied value of $125 million
cash or mix of cash n shares, @ $5.10. ..

..... OPC trading ahead of this on opening;. UWL in halt and going to the market to raise capital.



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Jun 15 2020, 10:36 AM
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OptiComm is getting into bed with Uniti UWL.

OPC holders seem to think it is a good deal, up a bit this morning on the news.

Probably scaling up us the sensible pathway for smaller outfits in the telco space, now the NBN build has finished.



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Feb 4 2020, 02:00 PM
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In Reply To: blacksheep's post @ Aug 22 2019, 08:35 PM

OPC seems to be doing well. After IPO @ $2.00, and straight out of the blocks last August, it hit $4.40 by Dec, with a gentle selldown after that.

Had an Investor day yesterday, confirmed guidance, built on the story of ever increasing use of fixed line broadband (fibre to the premises), developing services that will grow market share, and being smart about it. I like the idea of working with planned communities, retirement complexes, apartments, commercial, hotels and shopping centres; anything with a bit of central control rather than scattershot NBN "build and they will come" wishful thinking.

They must have opened up the bonnet; someone must have been impressed as there has been a nice 50c lift, back to $4.25



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 

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blacksheep
post Posted: Aug 22 2019, 08:35 PM
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New IPO listed today. SP opened @ $3.10 finished the day up 54% @ $3.08 - volume - 4.7 m

QUOTE
Melbourne-based wholesale network infrastructure operator OptiComm is set to list on the Australian Securities Exchange (ASX) following $42.3 million in capital raising.

The company√ɬĘ√Ę‚Äö¬¨√Ę‚Äě¬Ęs offer price was set at $2.00 per share, with 21.18 million shares on offer. Using the ticker OPC, OptiComm is due to start trading on the ASX on 22 August.

OptiComm, which has been operating since 2007, specialises in the design, installation, operation and maintenance of fibre to the premises (FTTP) network solutions for new residential and business development sites in Australia. It also has offices in Sydney, Brisbane and Perth.


Prospectus - > https://www.opticomm.net.au/wp-content/uplo...iComm-Ltd-1.pdf

Website -> https://investors.opticomm.net.au/investor-centre/

Top 20 own 82.55%



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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
 



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