Aussie Broadband Offloads Final Superloop Shares

Aussie Broadband has finalized the sale of its remaining stake in Superloop, marking the end of a complex investment journey. This decision comes just four months after the company received court approval to increase its ownership in Superloop. The ASX-listed fibre builder disclosed that it has offloaded its 11.99% share in Superloop for a total of $99.8 million. This divestment resulted in a significant financial gain of $42.7 million, underscoring the value of its initial investment.

The sale follows a period of regulatory and legal challenges. Initially, Aussie Broadband had aimed to expand its stake in Superloop, but regulatory constraints and subsequent legal proceedings necessitated a reduction in ownership. Despite this, the company managed to secure a favorable financial outcome from the sale.

This divestment aligns with Aussie Broadband's broader strategic focus. With the proceeds from the sale, the company is now concentrating on expanding its internet brand, Buddy Telco, and integrating its recent acquisition, Symbio, a unified communications-as-a-service provider. The move also reflects Aussie Broadband's ongoing commitment to exploring acquisition opportunities and driving organic growth in its core business areas.

The company is now shifting its focus towards expanding its internet brand, Buddy Telco, and integrating Symbio, which was acquired for $262 million in February. Symbio, a provider of unified communications-as-a-service, is expected to enhance Aussie Broadband's offerings with an extensive range of data, voice, and messaging services. Additionally, Aussie Broadband is concentrating on the growth of its wholesale fibre business.

Aussie Broadband is actively pursuing acquisition opportunities while adhering to a disciplined strategy, with a strong emphasis on maintaining its robust organic growth, as outlined in an ASX statement. The company's brand, Buddy Telco, is marketed as a "digital-first challenger" and offers fibre connectivity through both the National Broadband Network (NBN) and Aussie Broadband’s proprietary network. This strategic positioning aims to differentiate Buddy Telco in a competitive market.

In addition to its focus on brand and network expansion, Aussie Broadband has achieved notable success in the wholesale sector. The company has recently secured significant enterprise contracts with prominent organizations including Bunnings Warehouse, Hitachi Construction, Austin Health, Mercy Health, Grill’d, and the petroleum company United. These deals reflect Aussie Broadband's growing influence and capability in providing comprehensive telecommunications solutions to major clients across various industries.

Earlier this year, Aussie Broadband acquired a 19.9% stake in Superloop. However, Superloop required Aussie Broadband to reduce its interest to 12% due to regulatory constraints from Singapore's Info-communications Media Development Authority (IMDA).

Aussie Broadband's effort to maintain its larger stake in Superloop through an injunction was ultimately unsuccessful. As a result, the company was forced to sell approximately 38 million shares of Superloop at $1.31 per share, a move that was necessary to comply with regulatory constraints. This sale allowed Aussie Broadband to reduce its ownership stake in Superloop to 12%, as required by the Singaporean telecommunications regulator, the Info-communications Media Development Authority (IMDA).

However, despite the initial regulatory hurdles and the forced sale of shares, Aussie Broadband's persistence paid off. A month later, the company secured regulatory approval from the IMDA to hold a larger stake in Superloop. This approval was a significant development, enabling Aussie Broadband to pursue its strategic goals and potentially increase its influence in the telecommunications market.