Saturday, November 25, 2017

Australian giant closer to $1.66bn sale?

Large telco, data centre and cloud operator has opened up its data halls for a due diligence set to be conducted by KKR.

Australian telecommunications and data centre services provider Vocus Group has received a preliminary, indicative and non-binding proposal from Kohlberg Kravis Roberts & Co. L.P. (together with its affiliates, KKR) to acquire 100% of its shares for $1.66bn.

The company’s Board said it will allow KKR to conduct due diligence on a non-exclusive basis in order to establish whether an acceptable binding transaction could be agreed.

Vocus’ Chairman David Spence said: “The Vocus Board believes that the management of Vocus has established a strong strategic plan which will deliver value for shareholders both in the short and medium term.

“While we are confident that the management team can deliver on the strategic plan, we believe it is in the best interests of shareholders to grant KKR due diligence to explore whether a potential whole of company proposal is available that takes into account the benefits that the plan delivers.”

The company continued to explain in a statement that the Indicative Proposal is subject to a number of conditions, including due diligence to KKR’s satisfaction, availability of financing, unanimous recommendation from the Vocus Board, and entry into a definitive scheme implementation agreement between the parties.

“Any scheme implementation agreement would also be subject to a number of further conditions, including a determination by an independent expert that the transaction would be in the best interests of shareholders, shareholder and court approvals and all required regulatory approvals and clearances (including FIRB approval),” it reads in the investors statement.

Vocus is being advised by Goldman Sachs and Credit Suisse on the proceedings.

Vocus operates 17 data centres in Oceania, including seven in Perth, three in Melbourne, three in Sydney, two in Newcastle, and two in Auckland, New Zealand.

The company has also launched to the market Cloud Compute, a private and shared cloud computing platform for businesses workloads.