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Optus Tipped To Go After Amaysim After Energy Sale

Optus is believed to be getting ready to go after SIM Only telco Amaysim who has recently sold their Energy business at a loss.

According to the Australian the $115m Amaysim netted from a sale of Click Energy to AGL Energy recently offers further evidence the company overpaid for the business when it was acquired under previous management, according to market analysts.

The division was purchased in 2017 for $120m.

Recently Amaysim launched a competitive tender for wholesale network services which are to come into operation after its current deal with Optus is set to expire in mid-2020.

Amaysim says it is looking to “generate shareholder value through new and improved terms for the provision of wholesale network services that support its future growth and performance.

The company’s mobile subscriber base at the end of June is said to be 1.18 million. Amaysim adds that it adds around 7000 subscribers a month “organically”, and has added a further 115,000 via the acquisitions of Jeenee Mobile and OVO Mobile.

The move comes after Amaysim reported a $600,000 net profit after tax for the 2020 financial year, a major turnaround from the $6.5 million loss recorded in the previous year.

In the past Amaysim has tried to get into the grey smartphone market but ended up buying the energy business as the smartphone division failed to attract customers.

Some observers believe that the energy sale paves the way for Singtel’s Optus to buy Amaysim, with the telecommunications provider looking on again and off again for years at the operation.

Recently, there has been some talk that Optus has once again been circling claims the Australian.

Takeover talk aside, the challenge for Amaysim now will be to quickly reduce costs and streamline its overheads.

The key remaining value for Amaysim is its 836,000 mobile subscribers which could be attractive to Vodafone or Telstra.

It currently has a wholesale contract with Optus that expires in 2022, so Amaysim customers may change providers at that time if another group offers a better deal than Optus.

One option for growth is for Amaysim to acquire more mobile subscriptions from Optus.

Working on the sale of Click Energy for Amaysim was Luminis Partners.

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