Superloop Limited (ASX:SLC) Acquires Uecomm Fibre Assets
Acquisition Details
Superloop Limited (ASX: SLC) has entered an agreement to acquire Optus’ subsidiary Uecomm Pty Ltd for $17.5 million. This strategic move will add over 2,000 kilometres of high-capacity fibre assets to Superloop’s network, including 800 kilometres of owned duct. The fibre network spans Sydney, Melbourne, and Brisbane/Gold Coast metropolitan areas, providing access to over 1,900 buildings and approximately 50 data centres.
Funding and Impact
The acquisition will be financed through cash and existing debt facilities, with completion expected in early 2025. While the initial impact on earnings before interest, taxes, depreciation, and amortisation (EBITDA) will be neutral in the first year, this purchase will allow Superloop to gain greater control over a broader fibre network and is projected to yield long-term cost and revenue synergies.
CEO Comments
CEO Paul Tyler expressed enthusiasm for the acquisition, noting, “The location of the assets also boosts our Smart Communities ambitions, lowering capex connections to new buildings and broadacre developments.” Superloop aims to explore further opportunities to support its growth ambitions outlined in its three-year ‘Double Down’ strategy.
Motley Fool contributor Lauren Surplice has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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