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Superloop lands big pay day as it sells off overseas assets

Business

Shares in Bevan Slattery’s internet infrastructure company Superloop jumped 21 per cent this morning after it announced it had sold off some Hong Kong and Singapore assets for $140 million and banked a $32 million profit on book value.

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The Brisbane based company said it had entered into a binding agreement with funds affiliated to Columbia Capital and Databridge Investment Management to sell Superloop (Hong Kong) and assets help by the Singapore arm of the business.

The $140 million price was a 30 per cent premium.

Superloop said it would maintain operations in Singapore and Hong Kong and enter into a 15-year indefeasible right-of-use on the existing or future networks in Hong Kong and Singapore.

“Under the terms of the agreement, Colombia Capital and DigitalBridge will become a strategic partner to Superloop and will work with Superloop to drive incremental traffic on Indigo (Superloop’s undersea cable) with a preferential supply agreement.

Superloop managing director Paul Tyler said the deal would allow the company to release significant shareholder funds and redeploy them into more strategically aligned assets.

“This partnership will provide opportunities to work more closely to monetise out international and leverage our respective infrastructures and complementary customer base,” Tyler said.

He said the company would now review its capital structure and its gearing, investments in growth as well as liquidity and will inform investors of the outcome in its February half year results.

Slattery owns about 18 per cent of Superloop and was founder of the company. He has previously announced he would stand down as chairman at next month’s AGM.

 

 

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