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Nearly every single Over The Wire (ASX: OTW) shareholder has voted in favour of the proposed acquisition of the company by telco Aussie Broadband (ASX: ABB) at a scheme meeting today.
While the deal still requires Federal Court approval, with 99.99 per cent of votes cast in favour of the deal worth $344 million it is likely the scheme will become effective on 4 March 2022.
The takeover will see shareholders receive $5.75 per share held in cash, 1.15 ABB shares, or a combination of the two, and gives OTW an implied enterprise value of $390.4 million - more than $50 million more than the company’s current market capitalisation.
When the scheme was entered into back in December last year, managing director and co-founder Michael Omeros said the deal marked a new era for OTW.
“This is an exciting next step in the OTW journey, and I am very proud of what the OTW team has built over the years which is reflected in this compelling proposal for the company,” said Omeros, who will join the ABB board upon completion of the transaction.
ABB co-founder and managing director Phillip Britt also welcomed the deal.
“We believe Over the Wire is a great match to complement our current range of services. It’s a high quality business in a large and growing segment of the Australian telecommunications market,” Britt said last year.
“After several weeks of getting to know the company’s senior team, we very much look forward to welcoming OTW to the Aussie Broadband family.”
According to Aussie Broadband, the acquisition will have benefits including annual cost synergies of between $8 to $12 million within three years, with the two to generate FY21 revenue of $463.1 million and EBITDA of $51 to $55 million.
Shares in OTW are down 1.39 per cent to $5.66 per share at 3.03pm AEDT.
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