Vocus Communications Limited (ASX:VOC) announced a deal to acquire 14.5 per cent of Macquarie Telecom Group (ASX:MAQ) shares. The fund management company Perpetual will be offloading its 14.5 per cent stake in the deal. Macquarie Telecom is a leading managed hosting and business-only telecommunications company. It is a full service hosting provider offering managed dedicated servers, managed colocation and managed private and public clouds for mid-sized businesses, governments and corporate IT departments. In the announcement, Vocus said it had no intentions other than to hold the stake as a strategic investment. The investment is not expected to have significant effect on the company’s operations or financial position, the company said. The physically settled equity swap transaction has a price tag of $15.62m, payable on the agreement of the swap.
Vocus is on the edge of a merger deal with Amcom Telecommunications (ASX:AMM), a deal which will see Vocus becoming a $1.2bn powerhouse. Macquarie Telcom, on the other hand, has been facing headwinds recently. Shares of MAQ are down around 33 per cent in the last 12 months. But the acquisition deal has boosted MAQ by 55c, or 11.46 per cent, to $5.35 per share around 1:30 on Friday. Vocus has been steadily acquiring new companies while merging with others to grow its company into a competitor with the Singtel-Optus and Telstra duopoly. Shares of VOC have fallen 4c, or .70 per cent, to $5.94 around 1:30pm on Friday. Although VOC is down 7.19 per cent so far this year, it has advanced 37.80 per cent in the last 12 months.
Author: Simon Herrmann
Apr 17, 2015
Simon is a financial analyst at independent research firm Wise-owl specialised in small-mid cap growth opportunities and ethical investment opportunities. Simon's aim is to disrupt the cliché approach to investment decision making as he believes that socially and environmentally responsible behaviour is a necessity to long-term wealth creation. Simon has a deep fundamental understanding of the global financial landscape and has compiled 300+ research reports, valuations and corporate appraisals. Simon is commonly featured in major media outlets and his research is published weekly in The Australian.